Loans in consumer proposal
I have taken high interest personal loan to payoff my OSAP(student loan ) and university tution fees. i also pay off my someother loans which i borrow from my friends and family during studies. i want to do consumer proposal now. My Question is that i can include that loan in proposal although it is 2 months old.
You may (in fact, if you file a proposal you are required to list all of your debts). The question you should be asking is “how much trouble will I get into filing a proposal only two months after taking out a new loan?”
This is a complicated area of the law – basically you’ve done two things that may cause your creditors some concerns:
1) you “preferred” (treated better) some of your creditors by paying them off – unless you paid everyone off, the people you didn’t pay off may well complain; and
2) by borrowing money so close to the time you are thinking about filing, someone is bound to ask, “did you know you were going to file when you took out the loan?” If the Ciourt beleives that you did, then you may be held responsible to repay the new loan.
I strongly suggest you contact a trustee in your area to discuss what you’ve done and the potential ramifications of your actions.