What is required for proof of debt obligation to friends or relatives?

October 13th, 2011 by Questions

If I had been extended some loans by friends and relatives, what evidence can I present to the Trustee to show that these loans and creditors exist? Will the usual promissory note do? What about loans wherein it wasn’t documented because of trust or faith?

Is it legal after the Consumer Proposal period ends to pay these relatives and friends additional monies since they too would have taken a hit during the Consumer Proposal?

Posted from: Ontario

Questions

One Response to “What is required for proof of debt obligation to friends or relatives?”



October 13, 2011 at 5:12 am, A licensed trustee said:

You are required to list all of these personal and/or familiy loans if you decide to file and your trustee will send them all notices. It is up to the lenders to prove that the loan exists. If there is no loan agreement then proof of payment (cancelled cheque, bank statements showing money coming out of one account and into another will work). If there is absolutly no paper trail then it may be difficult to prove the debt.

Once you have completed your proposal you have the right to repay any of your debts that you want to – the proposal absolves you of the legal obligation to repay them, but that doesn’t mean you can’t keep paying them off if you want to. The catch – you CANNOT make additional payments during the proposal. You MUST wait until you have completed the proposal or it may get you into trouble.

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