Consumer Proposal for debt outside bank

November 4th, 2008 by Questions

My bank (CIBC) is currently putting together a proposal for all CIBC-Debt (Line of Credit, Visa, Overdraft). If after entering into a consolidation agreement with CIBC, can I then file a Consumer Proposal for all `external` debt without disrupting the agreement with CIBC?

Posted from: Ontario


One Response to “Consumer Proposal for debt outside bank”

November 05, 2008 at 8:14 am, A licensed trustee said:

The only way the CIBC can be excluded from a consumer proposal (if you decide to file one) is if the CIBC debt is secured (they have some sort of collateral for the loan). If they are unsecured then they will be treated like all of your non-CIBC debt andf subject to the terms of the proposal.

If you don’t mind my asking, why would you bother to make a deal with the CIBC and then file a proposal for everyone else? If you have to file a proposal anyway then it should be for all of your debts – I think you should speak to a trustee in your area BEFORE you commit to the CIBC deal.

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