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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Proposals/unsecured/secured debt

Hi. I have been researching consumer proposals as an alternative to bankruptcy, my question is, you are allowed up to $75,000.00 in debt to apply. I currently owe $74,000.00 in unsecured debt. I owe $30,000.00 on my mortgage, and $9000.00 for a secured debt (car loan). Does the unsecured debt count only, because if the car loan is added it is over the $75,000.00 limit?

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One Response to “Proposals/unsecured/secured debt”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

Unfortunately you would not currently qualify for a Consumer Proposal as the cut-off for eligibility is less than $75,000 of non-mortgage debt. However, the Bankruptcy and Insolvency Act also allows an individual debtor to file a Division I Proposal, which is very similar to a consumer proposal and may allow you to effectively negotiate the current debt load down to a much more realistic level. The best thing to do is to contact a trustee directly (see “Find a Trustee” on the left hand side of the page) and have him explain how Division I Proposals work, the primary differences between this and consumer proposals, and help to determine if this would work in your situation.