Do I have to declare debts in a Consumer Proposal which are past the statute of limitations?
I have approx $100,000 in credit card debts, which are all 6 years old and have all passed the statute of limitations. Only about $30,000 worth of the debt was taken to court and awarded a judgment against me. I want to file a consumer proposal to get rid of the judgment debts, but I do not want to include the other debts because they are past the SOL. All of the debts have fallen off my credit report, except the judgment debts which are on my credit report.
If I file a consumer proposal, can I just include the $30,000 in debt? If not, how would the trustee know? I don`t feel it is fair to have to include those debts. What if I file a consumer proposal 70 years from now, will I need to include them then? Is there any limit of age for debts to not be included in a consumer proposal?
Posted from: British Columbia
I would be very cautions when dealing with the statute of limitations. Your creditors can take some very simple action to perserve their right to collect past the time frame identified in the statute of limitations and most are familiar with what has to be done and regularly take those necessary steps.
I have seen a number of situations where people were convinced their creditors rights to collect had expired and they actually were not.
What I would recomend is that you are probable best to list all of the debts, including the student loans, when you file the consumer proposal. There really is no down side to listing these debts, but there definately is a a down side to you not including them.