Free Consultation

Credit payments during Proposal.

Hello,

I am thinking about doing a Proposal and i would like to know, during the process of the proposal, ie: time between submission of proposal by trustee and acceptance by creditors, is one still obligated to make payments towards one’s debts?
Also, is there any time frame/penalties involved with getting rid of assests before a proposal is applied for?

Thanks,
John

(my apologizes if i am abusing this with 2 questions)

Posted from: Ontario

One Response to “Credit payments during Proposal.”

A licensed trustee said...

Between the time you file the proposal and its acceptance 45 days later you are not required to make any of your unsecured debt payments – in fact, you are prohibited from doing so. You will have to make your mortgage and car payments – if you want to keep the house and car(s).

The asset question is a bit trickier – it depends on the dollars involved and how much you are offering your crerditors in your proposal. If you cahs out a $200 CSB no one is likely to care. If you had $5,000 in a GIC thast suddenly “disappears” there will be issues. You should discuss this question with your trustee BEFORE you decide to file the proposal.