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When you file a consumer proposal all your credit cards have to be delivered to your trustee

I have a large debt with just one creditor, what would happen to all my other creditors, who I don`t any money to, if I were to file a consumer proposal? Would all my credit cards be cancelled?

Posted from: Ontario

One Response to “When you file a consumer proposal all your credit cards have to be delivered to your trustee”

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

When you file a consumer proposal all your credit cards have to be delivered to your trustee or destroyed, this is irrespective of whether there is any money owing on them or not.

The only exception to this is if:
a) the credit card was issued to a third party (e.g., employer, spouse, friend, parent); and
b) the trustee has confirmation that the issuer or the third party has authorized the bankrupt to continue to possess and use the card.

Otherwise you are not permitted to keep any of your existing accounts.