request for meeting of creditors of consumer proposal
consumer proposal

Meeting of Creditors Requested for Consumer Proposal

A reader asks:

I filed a consumer proposal back in August and a meeting was just called with my creditors.

I only have BMO (majority holder) and RBC to deal with. They rejected my first offer and we are counter-proposing with another amount. I feel like we should just accept the amount that they want at this point. But I know that I am being helped so I pay the least in the end.


I don’t want the proposal to be rejected. It sounds like it’s only a difference of $50 from what I could gather.


How likely is it to be rejected? Or does this meeting just serve as a negotiation? Is it just back and forth until we agree on a number?

Our reply:

A few things you should be aware of:

  1. When BMO and RBC rejected your initial proposal, they were required to request a meeting of creditors in order to prevent your initial proposal from being automatically approved.
  2. It’s unlikely anyone from BMO or RBC will be physically present at the meeting. What normally happens is they will vote either FOR or AGAINST your proposal by submitting to the Trustee a document called a Voting Letter. The Trustee will register BMO and RBC’s vote before the scheduled meeting. He/she should let you know of the outcome before the meeting actually starts – perhaps a day in advance.
  3. If it appears they’ll reject your proposal and you’re comfortable with paying the additional $50 they’re requesting, you can inform the Trustee that you’ll acquiesce to what your creditors want. Your Trustee should then contact both BMO and RBC and obtain amended voting letters before the meeting of creditors starts so they can formally vote FOR your revised proposal.

Good luck!

Victor is the President of Fong and Partners Inc. He is a Licensed Insolvency Trustee and Chartered Professional Accountant. With over 20 years of experience in the insolvency field, Victor has been involved in both corporate and consumer insolvency engagements. Previously with a large national firm, Victor founded Fong and Partners Inc. in 2007 so that he could dedicate his professional life to help people from all walks of life to deal with their debt.

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