Can Creditor decide not to be part of Consumer Proposal?
January 22nd, 2009 by Questions
Can a creditor decide not to be included on a consumer proposal by not submitting proof of claim? What if they did not submit proof of claim? Can this be settled at another time? Can I choose to pay them on my own? Thanks.
Posted from: Ontario
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January 25, 2009 at 8:34 am, A licensed trustee said:
If a creditor decides not to submit a proof of claim it menas they will not receive any further notices from your trustee and (more importantly) they will not be entitled to receive any money from the proposal. The debt will still be discharged by the proposal (assuming it was not one of the special types of debt that are not discharged). So, by not filing a proof of claim all the creditor is doing is forgoing any payments from the trustee…
If you start paying a creditor “on th side” while in your proposal and your trustee becomes aware of these payments you proposal may be cancelled. One of the basic concepts of bankruptcy law in Canada is equitable treatment. If one of your creditors is being paid outside the proposal then it may be that your other creditors (in the proposal) are not being treated equitably (not receiving the same rate of repayment).
Once your proposal has been completed you have the right to go back and repay any creditor as much as you like. Legally the debts will have been discharged, but if you decide you want to repay any/all of them in full you may do so….