Consumer Proposal – Payment Change

May 30th, 2011 by Questions

Dear Sir/Madam:

I am currently on Consumer Proposal. I have been paying $425 per month for 8 months and will pay off in 5 years.

Yesterday, I went my Trustee Office for my 2nd Mandatory Counseling Session. There, I was told by the counselor that I will have to pay more than what I regularly pay every month because one or two of my Creditors had response (a few months after the court approved my proposal) and said that I owe more that what I told the Trustee.

The counselor told me go to the bank and stop the payment (monthly payment) and go for Bankruptcy.

I cannot afford to pay more than the regular monthly payment now. Should I go for bankruptcy?

Thank you!

Posted from: Ontario


One Response to “Consumer Proposal – Payment Change”

, A licensed trustee said:

This question was going to be deleted because you are obviously already dealing with a trustee, but our staff asked me to take a second look because something is not quite right here…

Your proposal should have been deemed approved by the Court 60 days after you filed – for someone to come back to you in month 8 asking for higher payments is unusual. Technically, they needed to schedule a creditors meeting and asked you to agree to the amendment (increase) and then have all of your creditors vote on it again. There are no provisions in the law for them to simply “tell you to start paying more”…

The only way this works is if you have been paying a debt consultant for 6 months and really only filed the proposal in the last 2 months. I hope this is not the case, if it is, then you’ve just thrown away 6 months worth of payments – for the other folks reading this blog, stay as far away from these debt consultants as possible. All they do is charge a fee to send you to see a trustee.

I think you may want to contact the Office of the Superintendent of Bankruptcy and ask them to look into your file – something is not quite right here…

You have the right to go and see a different trustee to file for bankruptcy if you don’ty want to push back on the payment issue.

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