Selling your House while in a Consumer Proposal
November 19th, 2005 by Questions
What happens if you file a proposal with your creditors, that repays eg 50% of your unsecured debt, and then your financial situation changes down the road? For example, you sell your house later, which has little to no equity at the time of filing, but 1-2 years later you sell and move to an apartment and manage to get eg $10,000 – $15,000 profit. Or, if you inherit money from a will, or make more money through employment. Is your income and any other money coming in or going out monitored during this repayment period, or is everything based on your financial situation at the time of filing a consumer proposal?
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November 21, 2005 at 10:22 am, Barton Goth, GCO Inc. Bankruptcy Trustees said:
In a proposal there is no automatic vesting of these types of assets. As a result these monies would be yours to keep. Once a proposal is accepted, you are bound by the terms of the proposal. Therefore, unless you have consented to the vesting of these assets, you would retain any inheritance, lottery winnings, proceeds from the sale of house or increase in employment earnings.