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Mr. Mike

I have 3 questions please.

1. Will I be able to renew my mortgage if I file for consumer proposal? I’m renewing in 2 years. Me and my wife are in the mortgage. Only me is filing for proposal, not my wife.

2. If I get some money like bonuses or lottery winnings, can I pay in lump sum so I’m finished with the proposal?

3. Will my employer know about the proposal? Will that affect my employment status? I’m afraid they might lay me off if they find out.


Posted from: Ontario

One Response to “Mr. Mike”

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


Normally a renewal of a mortgage is not impacted by the filing of a consumer proposals. A renewal doesn’t require you to re-qualify, it essentially just rolls over and as a result you shouldn’t have any issues.

In terms of a lottery winning and a consumer proposals, if you win the lottery you would definitely have the ability to make a lump sum to finish the proposal (and there is no cost to paying it off early like you might find with some loans or mortgage).

As for your employer, normally your employer only finds out about a consumer proposal if there is a garnishee in place and it needs to be stopped. Otherwise there wouldn’t be any contact between your Proposal Administrator and your work. As well, there is a section of the legislation that stipulates that you cannot lay someone off just because there has been a proposal filed.