Banks and Consumer Proposal
September 20th, 2009 by Questions
I have unsecured debts at my primary bank where my mortgage (always paid on time) and my RRSPs and savings, chequeing accounts are. If I enter a CP I have to include all unsecured debts so those unsecured debts from this bank will have to be included. How would this effect my other products with this bank ie. can they call my mortgage even though it was always paid well or close / freeze my savings / chequeing accounts etc..
Posted from: Ontario
One Response to “Banks and Consumer Proposal”
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September 21, 2009 at 1:09 pm, A licensed trustee said:
We advise all of our clients to switch banks before they file a consumer proposal or bankruptcy. Your RRSPs can’t be touched, but your savings and chequing can – it is called the right of set-off and it means the banks can take oney out of one account to apply it to a loan or credit card.
If you keep the mortgage current you shouldn’t have any issues – they can’t legally call your mortgage simply because you filed a proposal and the bank won’t. If your payments are in default (and you say your’s are not) then the story changes and the bank can call the mortgage if they want to.
Discuss all of this with your trustee before you file, but if it were me, I’d be changing banks…