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Can we pick which debts to include in a Consumer Proposal?

After doing a lot of research online, I think our best option is consumer proposal. Before I book an appointment with a trustee, I have a question. One of the loans that my husband acquired is a personal loan. We do not want to jeopardize that relationship with this friend. Is it possible to keep this debt out of the consumer proposal?

Posted from: British Columbia

One Response to “Can we pick which debts to include in a Consumer Proposal?”

A licensed trustee said...

Unfortunately, you cannot pick and chose which debts to include in a consumer proposal. The law requires you to list all of your debts and offer all of your unsecured creditors the same “deal”. If you don’t list the personal loan and your other creditors find out that you didn’t then they have the right to expect payment in full as well… It defeats the purpose of filing the proposal in the first place.