Question Asked...
I am considering either a consumer proposal or a bankruptcy. I was bankrupt 10 years ago but now debt overload has affected our family once. again. The question I am asking if we do go bankrupt or prepare a consumer proposal what happens to the home renovations that I had done through a company in early fall that was put on a 5 month (don’t pay for 5 months plan).
The patio door and mid efficiency furnance was installed and they cannot take it back correct?
While your creditors won’t take back the patio door or mid efficiency furnace as a component of your bankruptcy you would be required to compensate the creditors for the full value of these renovations that were put on credit, failure to do so would result in ineligibility for a discharge.
Similarly, if you file consumer proposal, these transactions would be considered when ensuring the proposal offers a greater recovery for the creditors than a bankruptcy.
For more details on the reasoning behind this you are best to contact a licensed trustee in your area.