Can a bankruptcy be converted to a consumer proposal?
May 5th, 2015 by Questions
Can a bankruptcy be annulled or converted to a consumer proposal depending on financial circumstances changing?
One Response to “Can a bankruptcy be converted to a consumer proposal?”
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May 05, 2015 at 9:10 am, Doug Stuive, CA | Trustee | CIRP said:
A bankruptcy can definitely be converted to a consumer proposal if the financial circumstances improve. This can happen when a bankrupt comes into an unexpected large sum of money, or if their household income increases and the bankruptcy would require large surplus income payments. It often benefits the bankrupt to covert their filing to a consumer proposal, which annuls the bankruptcy once it is completed. Throughout the bankruptcy process the trustee will monitor your income and expenses and would be able to recommend whether this option would benefit you.