Can the high home value stop me from filing a consumer proposal?

October 22nd, 2015 by Questions

The value of my home significantly exceeds my total debt. Would that be a problem if I was to file a consumer proposal? Can it result in creditors NIL my proposal?


One Response to “Can the high home value stop me from filing a consumer proposal?”

, Doug Stuive, CA | Trustee | CIRP said:

A consumer proposal is meant for those individuals that after meeting their basic living expenses do not have enough money left to service their debt in full. In other words, the value of your assets are one of the factors taken into consideration when contemplating filing a consumer proposal but it is not the only factor considered. You indicated that the value of the house is more than your debt, but it is your equity in the home that is taken into account when tailoring a consumer proposal. You are required to get an accurate appraisal of your property and provide that to the licensed trustee along with detailed information about your income, expenses and debts. Your advisor will help you to determine what you can afford on a monthly basis and from there can help you review your options. A consumer proposal is a legally binding contract that your creditors vote to accept. It is possible for your creditors to accept the payments you are offering rather than collect their debts through other legal channels which can be costly and time consuming.

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