Can I add another debt to my consumer proposal?
When I separated with my partner, we lost our house and the bank sold it for less than what was to be paid. I filed a consumer proposal but I did not include the shortfall to find out later that the amount has been registered on my other property. Can I go back and include the amount in the proposal?
Posted from: Ontario
In order to provide you with a definite answer we would need to know under what grounds the creditor was able to register a lien on your property. In general a creditor cannot register a lien on your property unless you have signed documents allowing them to do so. If that is the case then the shortfall on your property becomes a secured debt. You would not be able to include this type of debt in your consumer proposal.
If the creditor has filed a writ with the Sheriff’s office, that is usually only payable should you sell the property. This type of debt is usually an unsecured debt and can be included in a consumer proposal. Whether you can include this debt in your current consumer proposal will depend on the date the debt was incurred versus the date of filing the consumer proposal. It will also depend on the amount of the debt as included the debt may mean you would need to increase your payments in order to ensure the creditors get the agreed upon dividend.
I would suggest you contact your proposal administrator for assistance in determining what your options are for dealing with this shortfall.