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Paying off Consumer Proposal Early

Can you pay off a Consumer Proposal early?? Is there any risk or benefit to doing this?? Also, would the creditors in the proposal be able to come after me for any more money that what was set out in the proposal??

Thanks for any information you can provide me.

One Response to “Paying off Consumer Proposal Early”

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

This partially depends on how the proposal is worded, but in most instances there is no problem with doing so and upon fulfilling your obligations under the proposal you will legally be cleared from the debts listed in the proposal. The only way your creditors would have any recourse is if the could demonstrate that the approval of the proposal was obtained through fraud or misrepresentation of you circumstances or that the debts are debts which are not released by a bankruptcy or proposal (i.e. maintenance, alimony, court fines…)