Personal Proposal

My business is not incorporated and therefore I am looking at all my business debt as personal.
I want to continue to operate my business, so would entertain the idea of a Proposal. My debt is close to $200,000.

#l Some creditors, I would like to leave off the list, as I am close to paying them off.
Am I allowed to do that?
Am I allowed to carry on business `as usual` with several of my credit cards, but not all of them?
I have a secured creditor in the form of the bank…would they become part of the proposal? or do they overide the whole works and make the Proposal a mute point?

In otherwords..does all of the debt become part of the Proposal?

#2 Is it possible for me to `negotiate` with some of my creditors and credit card companies, with your help, without going into a proposal or bankruptcy?

Posted from: Ontario

One Response to “Personal Proposal”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

If you file a consumer proposal you legally must list all creditors to whom you owe greater than $250.00. So you are not able to selectively leave any creditors off the list. As well, you are not able to retain any credit cards, all credit cards must be either destroyed or delivered to your trustee when you file the consumer proposal.

In terms of negotiating with your creditors in the absence of a formal consumer proposal being filed, you can do this your self, but most licensed trustee’s don’t get involved in this sort of thing as it is very difficult to get everyone on board without the protection afforded by a consumer proposal.