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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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Would a Consumer Proposal be rejected because my home could be seized?

Hello, I noticed in all the information I have read about proposals , it states $75,000 in debt excluding mortgage. If the creditors are better off in a Bankruptcy because of a debtors home, does mean the proposal would be rejected because the home could be seized?
Thanks.

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One Response to “Would a Consumer Proposal be rejected because my home could be seized?”

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

Not at all, there are ultimately 2 types of proposals under the Bankruptcy and Insolvency Act. The consumer proposal is essentially a streamlined version of proposal that is intended for use with simpler situations. The more complicated types of proposals, which are commonly referred to as Division I proposals accomplish the same essentially purpose as the Consumer, but have some additional requirements (i.e. there is an automatic bankruptcy that occurs if the creditors do not vote in favor or should someone default on their proposal, requires a higher level of support from the unsecured creditors and has a more aggressive timeline for voting). So the $75,000 in debt excluding mortgage us simply a cut-off that is used to determine which type of proposal you are eligible to file.