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Aborted Proposal

A party owed me a large sum of money that was included in a consumer proposal. They did not fulfill the conditions of the proposal and it was annulled. I received a very small portion (from the trustee) of what I was supposed to receive from the proceeds that had been collected to that point. It is my understanding that I have the right to persue this party for the rest of the amount he owed before he submitted the proposal. Is this correct?

One Response to “Aborted Proposal”

A licensed trustee said...

YOu are correct – if the proposal has been annulled (cancelled) then all of the creditors’ rights are restored. If you had an order to garnishee wages you may ask that it be re-instated. If you want to take the person to Court to obtain such an order you can.

I should warn you that when a proprosal has been annulled it is not unusual for the debtor to turn around and file for bankruptcy which puts all of those protections back in place.