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

January 3rd, 2014 by Questions

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.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)