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Are all creditors included with a consumer proposal?

How long do I have to have an open loan or credit card to include this creditor on my consumer proposal? for example: I got 3,000.00 loan in the last 3 months can I include this creditor on my proposal?

Posted from: Ontario

One Response to “Are all creditors included with a consumer proposal?”

Doug Stuive, CA | Trustee | CIRP said...

When you file a consumer proposal you must list all of the creditors that you owe money to and offer a consumer proposal that takes all of them into consideration even if they were only recently acquired. If a creditor feels that you took out that loan knowing that you would be unable to pay them back they always have the option to vote against your consumer proposal. Depending on what percentage of debt this creditor represents this may or may not affect whether your consumer proposal is successful.

If this creditor does vote not to accept your proposal they will still have to accept the consumer proposal as a final settlement on the debt if the majority of your other creditors in dollar value have voted to accept your proposal.

The Bankruptcy Act does offer a few options should the creditor feel strongly that the proposal should not move forward or if they feel their debt should not be released by the completion of your proposal payments. In both cases the creditor would need to file the appropriate materials with the Court and would need to obtain a Court Order.

Based on the amount of the debt and the time and effort involved in the procedure to either get your consumer proposal cancelled or get the debt to survive the proposal it is unlikely you will run into an issue in this case.