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Consumer Proposal and Assets

When filing a consumer proposal I have read that you get to keep your assets – is this fact? A friend of mine is drowning in debt and can hardly make ends meet but has a recreational asset that is of value that they have worked for years to obtain and really does not want to lose. What are the stipulations regarding assets when filing a proposal.

Posted from: Ontario

One Response to “Consumer Proposal and Assets”

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

This largely depends on the types of assets. But you are correct that there is no provision for vesting of assets like there is in bankruptcy. However, the proposal cannot compromise any secured creditors who the recreational assets have been pledged to. As well, the proposal must consider the value of these items as a proposal is always compared to a bankruptcy and it is necessary to ensure that the creditors receive more than would be available in a bankruptcy.