Does filing for a consumer proposal stop an upcoming court date?

If I have someone who is suing me for a private debt (not a bank, but an individual), and we have a court date set for 2 weeks from now, if I file a consumer proposal and include his debt, what happens to the court date? Would it be postponed until the CP was either accepted or denied, or would the court date still go through, and the person get a judgment, but he just wouldn`t be able to collect until the decision was made?

Posted from: British Columbia

One Response to “Does filing for a consumer proposal stop an upcoming court date?”

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

Assuming that this is a standard unsecured creditor and does not fall into the list of debts that are not released by the filing of a bankruptcy or a consumer proposal, then yes. Upon the filing of a consumer proposal there is an immediate Stay of Proceedings that is inplace. This is ultimately court protection that prevents any of your normal unsecrued creditors from making any collection attempts. This Stay of Proceedings is in place until at least the voting takes place and once approved through the duration of the proposal.