Should I include family loans in a consumer proposal?

December 16th, 2014 by Questions

I owe my sister about 35K, of which we have an agreement that I only pay how much I can afford each month? I am contemplating of whether or not I should include my loan with her in a consumer proposal? What are the advantages or disadvantages? Thanks!

Posted from: British Columbia

Questions

One Response to “Should I include family loans in a consumer proposal?”


December 16, 2014 at 12:32 pm, Desmond West-Chow, CIRP said:

Unfortunately the law requires that you do include the loan to your sister in your consumer proposal. The reason for this is that the governing legislation that a proposal falls under (the Bankruptcy and Insolvency Act), is designed to provide all creditors with fair and equal treatment. What this means for you, is that if you decide to file a consumer proposal, all of your creditors must be treated equally whether they are one of the big banks in Canada or a relative. Major disadvantages of not including the loan, would be that you would be failing to disclose full information on a sworn document which is considered fraud and may result in the proposal being annulled at a later date.

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