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Can I file a consumer proposal WITHOUT MY HUSBAND FINDING OUT?

I have about $100,000 in credit card debts.  I am no longer working and my pension from my job is only $1500 per month.  My husband & I jointly own a home and no longer have a mortgage but we are not connected financially, ie. he deals with different banks than I do because of my bad credit history.  Can I file a consumer proposal WITHOUT MY HUSBAND FINDING OUT?

In 2 more months I will be collecting CPP and may get about $500-$600 more per month.  What do you think of my situation??

Posted from: British Columbia

One Response to “Can I file a consumer proposal WITHOUT MY HUSBAND FINDING OUT?”

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

Here is the challenge, the residence. The reason that the house is an issue is that when you craft a consumer proposal you legally have to offer at least as much as would be available in a bankruptcy. The challenge is that in a bankruptcy you are only permitted to have a principal residence: up to $9,000 (or $12,000 in Greater Vancouver or Victoria). So the result is that in a bankruptcy, your creditors will likely get a substantial percentage recovery (I can only assume it would be payment in full given the average price of housing in most major municipalities in BC). If in a bankruptcy the creditors are going to get paid in full, you may still be able to do a consumer proposal but you would have to make sure the creditors get paid in full under the proposal as well.