Consumer Proposal and Contingent Debts
March 27th, 2006 by Questions
My husband and I bought a restaurant. At this time our credit rating was excellent. We thought this business would be good for our retirement. Everything went wrong. Business dropped off dramatically we were in dire straights. We raised the line of credit on our house and cashed in all our RSPS to pay employees and keep the business going. Finally after a year all our credit cards were maxed out everywhere and our home equity line was higher than the value of the house. Now I am on a disability and my spouses income from is job is approximately 4000. a month.
The restaurant was taken over by the bank in November 2005. We had a government guaranteed loan through the bank.
We filed a consumer proposal on the advise of our trustee for our personal debts but in the list of creditors Revenue Canada and the bank are listed under contingent debts. What if when we eventually find out exactly how much they claim, our debts add up to more than 75,000.for each of us. We want out of this mess the quickest possible way. We are both 59 years old.