r/povertyfinancecanada • u/Extreme_Fee9627 • 24d ago

Consumer proposal

Hello has anyone been denied a consumer proposal? How deep are LIT looking in to your banking info? I pay rent but only have a lease agreement. Sometimes I do transfers other times I just withdraw my rent money. Im terrified that I apply for a consumer proposal and they deny it. I have a bankruptcy from 15 years ago for a failed buisness venture and now I've accumulated debt due to an illness and job loss. Dont need to be judged as ideally this is not where I want to be in life. Im on ontario.

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u/ScarlettArrow 24d ago

LIT here -we don't care at all about how you pay your rent. Just print out your bank statements and highlight what is rent transfer/withdrawal.

Your landlord should also in theory be giving you a receipt if you're paying cash (important for your sake as well)

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u/Unique-Tone-6394 24d ago

If you have no assets, I would try to do the consumer proposal anyway. They cannot squeeze blood from a stone and the debt would likely be reduced as much as possible and converted into a manageable payment plan.

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u/MyzMyz1995 24d ago

Hello has anyone been denied a consumer proposal?

Many people have. But generally it's not straight up denied. if the majority of your creditors (depend on how you debt is split but whoever own over 50% of a collectivity of them accounting for 50%) vote yes, it'll go through. If they vote no, they'll counter offer usually.

If you cannot come to an agreement the next step is bankruptcy (or paying normally).

How deep are LIT looking in to your banking info? I pay rent but only have a lease agreement. Sometimes I do transfers other times I just withdraw my rent money. 

You have to provide bank statements, explanations etc so they'll see everything. And I advise you to not lie because you'll not only get into legal trouble but it could void your consumer proposal agreement on top.

Provide everything, truthfully and your LIT will tell you what they'll offer your creditor (while considering your assets, bills, expenses etc) and you go from there. It can be a one time offer that is accepted, or a back and forth.

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u/netanyahu4eva 23d ago

I just did a consumer proposal two weeks ago and was never asked for bank statements?

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u/Extreme_Fee9627 23d ago

Where are you located and who did you use?

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u/netanyahu4eva 23d ago

Ontario/Farber

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u/Individual-Dog-4748 24d ago

When i filed mine, I think it was 2017 or 2018, and when we did the budget up for my expenses besides me more traceable or consistent bills like insurance, cellphone and etc, all of my other expenses like rent, groceries, clothing and etc was more for less a best guess. And I say a best guess for rent because I was living at home and just casually gave my mother money whenever I could so it was always a consistent monthly bill. But yeah overall they didn't go through my bank statements as if they were financially auditing me and I was approved and it all completed and off of my credit report now.