U.S debt
we have appx $20,000 in U.S debt and we have filed a consumer proposal(we live in Canada) we did not include the U.S. creditor…. we were told we really couldn`t. Can the creditor sue us or are we protected by the automatic stay? We have tried to work out a reduced amount, but they will not accept. Thank You
First, you were misinformed, your US creditor(s) should have been listed on your Statement of Affairs when you filed your proposal – it is a sworn document and you are required to list anyone that you owe in excess of $250 on the list, regardless of their location. If your trustee was aware of your US debt then they have made a mistake – if you didn’t tell your trustee about the US debt you need to tell them about it now.
The US creditor should be sent a copy of your proposal so that they may participate should they choose to – depending on the terms of your proposal, the addition of your US debt may constitute a “material change” and as such the rest of your creditors may be given the opportunity to review their vote in favour/against the orginal deal. Speak to your trustee about all this as it can be confusing…
Regardless, the stay of proceedings protects you from any legal action in Canada – if the US creditor wants to try and sue you here then they need to get permission from a Canadian Court first.