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Postponing a Consumer Proposal until equity is sold

We are cash poor and property rich.

We have substantial credit card debt that we cannot get a debt consolidation loan to pay off.

We are selling our home when our last child is in college – 1 year from now. (There are several other personal reasons that we can’t move until next year)

As our home has equity – the proceeds would be more than enough to satisfy the credit card companies.

Have you ever heard of a consumer proposal where the creditors will postpone the debt until the equity is sold??

One Response to “Postponing a Consumer Proposal until equity is sold”

A licensed trustee said...

Sure we have – in the “business” that is commonly referred to as a holding proposal.

The terms usually involve a monthly payment of some sort with a portion of the house proceeds when it is sold. The proposal would also include a clause requiring the property to be listed for sale within a specific period of time – if it is not the proposal would be in default and canceled.

I word of caution – these can be a great solution for some people, but once you start the process you will be forced to finish it. If you have any doubts about selling the property in a year then don’t make the offer.