Why Filing a Proof of Claim in a Consumer Proposal Matters

When a borrower files a consumer proposal, your file isn’t dead. If you file a Proof of Claim, you can still recover money and keep your options open if the proposal fails.

The Short Version

• File to get paid. Only proven creditors receive dividends.
• File to keep leverage. If the proposal collapses, you can usually pursue the full balance again.
• File to stay informed. The Licensed Insolvency Trustee (LIT) updates proven creditors automatically. 

Why Filing Helps

1. You receive dividends
   Even if it’s a fraction, it’s money you wouldn’t get without filing.
2. You keep the door open
   If the debtor misses enough payments, the proposal can be annulled. Your pre-proposal rights typically come back.
3. You can vote
   Filing lets your dollars count if there’s a creditors’ meeting or amendments.
4. You avoid chasing updates
   The LIT sends notices and the final payout details to proven creditors. 

What We File for You

• Proof of Claim with correct principal, interest up to the filing date, and any allowed fees.
• Backup documents: judgment, agreement/lease, ledger/statements, demand letters, and details of any security (PPSA, collateral).
• Proxy (optional) so we can vote or attend a meeting for you. 

If the Proposal Wobbles or Fails

• Missed payments can trigger annulment. If that happens, your full claim usually revives (watch for any limitation issues).
• If revived by the debtor/LIT or court, we reassess and protect your position.
• If completed, you receive a final dividend and closing statement. 

How We Make It Easy

1. Review your file and numbers.
2. Prepare the Proof of Claim, send for e-signature, and file with the LIT.
3. Track key dates: voting window, dividend cycles, and default thresholds.
4. Report results and handle payouts.

Quick Checklist (What we need)

• Signed credit/lease agreement + latest ledger
• Contact info for remittance
• Security details (if any): PPSA reg., collateral, realization status 

Bottom Line

File the Proof of Claim. It turns a stayed account into an active recovery. You get  partially paid if the proposal succeeds—and you keep full rights if it doesn’t.

Got a borrower in a consumer proposal? We’ll file the claim, monitor the file, and protect your recovery from start to finish.

 Contact Precision Paralegal Services to book a 20‑minute discovery call. 

#PrecisionParalegal #ConsumerProposal #DebtRecovery #CreditRisk #Collections #Insolvency #LenderSupport #InsuranceSubrogation #PPSA #BIAReady to explore a fit?