creditor omitted from proposal
I was omitted as a creditor from a consumer proposal. I was unaware that the debtor had filed a proposal and successfully attained one. During this time, I filed a claim in small claims court for the money owed me. After the preliminary court meeting, the debtor sent us a copy of the proposal. The trustee informed me that I would have to settle for the same percentage that was agreed upon by the other creditors. Is that right, and do I have any recourse. ?
Posted from: Ontario
All creditors receive the same rate of repayment in a consumer proposal, so what the trustee has told you is correct.
Any creditor has the right to ask for Court review of a consumer proposal – the purpose of the review is to bring to light questionable activities of the debtor. Failure to disclose a creditor is not necessarily questionable – it depends on the nature of the debt, the size of the debt and whether or not a reasonable person beleives the debtor could have forgotten about the debt.
If your debt represents more than 25% of the total debts of the consumer proposal then an adjustment or correction should be made. If your debt is relatively small then no changes are likely.
Contact a lawyer if you want a more detailed explanation of your options.