If your consumer proposal has been annulled, you might feel overwhelmed. This situation means your debt agreement is no longer valid, and creditors can resume collection efforts. But don’t panic—there are ways to regain control of your finances and move forward.

In Canada, annulment typically occurs if you’ve missed three consecutive payments or failed to meet the agreement’s conditions. Once this happens, your original debts return, including any accrued interest. While this setback can be stressful, it’s important to explore your available options and take action quickly.

The Impact of an Annulled Consumer Proposal

When a consumer proposal is annulled, creditors can once again demand repayment. This could result in:

  • Debt collection calls– Creditors or agencies may contact you to request payment.
  • Wage garnishment– A portion of your paycheck could be deducted to repay outstanding debts.
  • Legal action– Creditors might sue for repayment, potentially leading to liens or asset seizures.

Despite these challenges, there are ways to address your financial difficulties and regain stability. Seeking advice from a Licensed Insolvency Trustee (LIT), such as Andrea Orr, can help you understand the best course of action.

Your Next Steps

 Apply for a Court-Ordered Reinstatement

If your financial hardship was temporary—perhaps due to illness or job loss—you may qualify to reinstate your consumer proposal. This process requires a court request, proving that you’re now able to resume payments. A Licensed Insolvency Trustee (LIT), such as Andrea Orr, can assist in preparing your application and representing your case effectively.

 Apply for a Revival of Your Consumer Proposal

If your consumer proposal was annulled less than 30 days ago, you may be eligible for a revival. Instead of negotiating a completely new proposal, you can work with your Licensed Insolvency Trustee to submit an application for revival. A successful revival reinstates the original terms of your proposal, allowing you to resume payments under the same conditions

Explore Bankruptcy as a Last Resort

If reinstatement or renegotiation isn’t an option, filing for bankruptcy may be necessary. While it does impact your credit, bankruptcy provides legal protection from creditors and a structured path to financial recovery. A Licensed Insolvency Trustee can walk you through the process and help determine whether this is the right solution for you.

Alternative Debt Management Strategies

If you can afford to repay your debts, there are different strategies to help you manage your obligations:

  • Debt consolidation loans– Combining multiple debts into a single loan can simplify payments and potentially reduce interest rates.
  • Credit counselling– A professional counsellor can help you create a repayment plan and negotiate better terms with creditors.
  • Budget restructuring– Adjusting your spending and prioritizing essential expenses can free up resources for debt repayment.

By working with an LIT such as Andrea Orr, you can identify the best option for your financial situation and create a plan for recovery.

Get Professional Support

Dealing with an annulled consumer proposal can be overwhelming, but you don’t have to navigate it alone. With expert guidance, you can explore practical solutions to regain financial control and work toward a debt-free future.

Andrea Orr and her team specialize in helping individuals handle debt challenges. Whether you need help reinstating a proposal, restructuring your payments, or considering bankruptcy, they provide personalized guidance tailored to your circumstances.

Consulting a Licensed Insolvency Trustee ensures you receive professional advice and legal protection as you manage your financial obligations. Don’t wait until your situation worsens—take proactive steps today to explore your options.

📞 Reach out to Andrea Orr for a free consultation and start your journey toward financial stability today!