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consumer proposal annulled

After 3 yrs of a 4 yrs proposal, we missed 3 payments and the proposal was annulled. We received phone calls from creditors requesting full restitution with interest. Non of the creditors are secured. My home is mortgaged and payments are up to date. There is no possibility of meeting the requirements of the unsecured creditors.
Can the unsecured creditors garnish my wages. If so, then I will be unable to meet the mortgage.
If bankruptcy is the only option, is my current good standing with the mortgage lender in jeopardy if I can continue with the payments. Is there a possibility for amendment.

Posted from: Ontario

One Response to “consumer proposal annulled”

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

The unsecured creditor can definitely garnish your wages as all their collection rights were reinstated upon the annulment of the consumer proposal.

As for your mortgage, the filing of a bankruptcy shouldn’t really change anything with your mortgage, but if there is any equity in the property this may have an impact on on how the bankruptcy unfolds. For more information you are best t discuss this with a local trustee.