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Do creditors need to know if we are separating?

Two years ago, my wife and I filed a credit proposal and it was accepted. We have paid continuously and on a regular basis ever since.

One month ago, we decided to separate but have remained on very good speaking terms.

We just recently have gone our separate ways (living in separate houses) and are both still pooling our income to support each other’s expenses until all is settled.

However, we were wondering if we need to inform our Trustee of this situation. My wife’s income will be increasing significantly in the next month or two and we will be able to pay our credit proposal to the end.

Do creditors need to know the change in our financial situation IF we are still able to pay our agreed consumer proposal amount?

Any information relating to this topic (which seems impossible to find on the internet) would be appreciative.

Posted from: Ontario

One Response to “Do creditors need to know if we are separating?”

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

When you file a consumer proposal your creditors are accepting your payments as a final settlement on the debt that forms part of that proposal. Should your situation change as you described above your creditors cannot demand that you make higher payments and they can’t go after you for more money. Your wife’s income level increasing will have no effect on the status of your consumer proposals.

However, it is a good idea to update your administrator as to your separation and your new contact information. They need to be kept informed of how to reach you should questions or concerns come up during your proposal. Also, when your proposal is completed they can send you separate Certificates of Full Performance indicating that you have paid your proposal in full. Even though you are cordial, it is a good idea for you both to be responsible for keeping your own copies of those important documents and you will need to complete separate credit bureau enquiries to make sure that everything is correct on your credit file.