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Consumer Proposal & FRO

Consumer Proposal & FRO.  I owe 25000 to family responsibility office, if I file a consumer proposal or bankruptcy what happens with that?

Posted from: Ontario

One Response to “Consumer Proposal & FRO”

Doug Stuive, CA | Trustee | CIRP said...

The Bankrupt Act is meant to give debtors a fresh start in their financial life. Many debts can be discharged through filing a bankruptcy or consumer proposal but money owed to the Family Responsibility Office “FRO” cannot be included. This means that any collection activity by FRO will not stop when you file for bankruptcy or if you file a proposal. You will continue to owe these funds during and after the bankruptcy.

If you have debts other than the $25,000 owed to FRO you may want to consider some options for dealing with those debts. By taking care of any other debt issues you have, you may free up some money from your budget that would make dealing with the support arrears easier to deal with. Meeting with a licensed Trustee in bankruptcy can help you work out which options might be best for dealing with any other debt issues.