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New laws

Is there any idea of when the $250 000 debt limit for consumer proposals will come into effect. Will the problems with parliament happening right now postpone the date even further into the future? My husband and i currently owe about $160 000 in unsecured debt and I am also wonderering how often is division 1 purposals denied. We both have good income with about $7400 take home pay combined. Aslo when calculating debt for a consumer proposal do you have to include secured debt such as vehicles???

Posted from: Alberta

One Response to “New laws”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

This is a very difficult thing to even speculate about right now and your are correct that this all is related to the problems with parliament and the minority governments we have had sitting. So right now I don’t have any idea. The latest rumors I have heard suggested December 2008 or January 2009, but that was prior to the election and prior to these most recent problems with parliament. Since that time everyone I have spoken with seems to be entirely in the dark.

As for a Division I proposal, I haven’t seen these type of proposals be any more difficult than a consumer proposal to get accepted by your creditors, so it is quite rare in normal circumstances.

In terms of your vehicle (secured) debt, this debt is used to calculate whether or not you qualify for a consumer proposal, but the debt is not cleared by the proposal.