Home Equity
Hello, I have a question regarding the consumer proposal. Without getting into all the detail, I would like to know if there is a waiting period after I sell my house before I can submit a consumer proposal. Hypothetically, I sold my house and used the equity to pay off the Canada Revenue Agency and some personal loans. Is it now possible to do a consumer proposal?
Posted from: Ontario
There is no waiting period per se, but you will have to explain exactly what you did with the proceeds from the sale of the house. Your trustree must then decide if any of your creditors were treated “better” than the rest – this is called a preference and can complicate things.
For anyone else reading this post, you are better off to speak to a trustee BEFORE you sell your home. In most cases, the equity form your home can be used as a settlement for more debts if you speak to a trustee, rather than paying off some yourself.