Which Debts Will Be Covered By Consumer Proposal?

Should you file a consumer proposal in Ontario, make sure you meet with a Licensed Insolvency Trustee because they are licensed by the government to act as administrators of consumer proposals and bankruptcies. A Licensed Insolvency Trustee is able to effectively determine your circumstances and will help you with your the very best option.

Debts That Are Included

Should you meet with a Licensed Insolvency Trustee, you need to let them know what all your debts are. Include all of your unsecured debts in a consumer proposal. Unfortunately, you can not pick and choose which debts to include, or leave out. The creditor will determine how their debt is handled. There are two sorts of creditors. There are unsecured creditors and secured creditors. Each debt is handled differently in a consumer proposal.

Unsecured Creditors

  • Credit cards
  • Payday loans
  • Certain bank loans
  • Loans from individuals
  • CRA debts (income tax, HST)
  • Student loans

There are a few unsecured debts that are a bit more complicated to navigate around in a consumer proposal.

Secured Creditors
A secured creditor that holds a charge or security over an asset, such as a home loan.

  • Bank
  • Asset-based lender

There are two options with secured creditors:

You can keep the secured asset but you are required to keep up with current payments
You can surrender the asset back to the secured creditor.

If you happen to be going through a challenging time keeping up with your debt repayments and are considering of filing a consumer proposal, contact an administrator today. They can tell you if you qualify or not. A Licensed Insolvency Trustee is your best option for getting out of debt.

Graci & Associates Ltd.
150 Colborne St. Suite 2,
Brantford, ON N3T 2G6
Brantford: 519-753-7361
Hamilton: 905-525-7077

Don’t Wait Around to Take Charge of Your Debt

Among the reasons why people file for insolvency is because of a job loss. You might be reaching your financial obligations now, however staying on track with your mortgage and the minimum payments could be a challenge. For many Canadians, your whole pay cheque is consumed each month with your living costs and debt payments.

Doing something about it today

The simple fact is that any time is a very good time to take the appropriate steps to deal with your debt. Now that you have encountered the very fact that your debt payments are no longer controllable, here is what you should do:

  •  Prepare a budget
  • Stop unnecessary spending
  • Calculate all your expenses
  • Make a list of all your monthly payments
  • Be realistic
  • Look into a licensed insolvency trustee about your options.

Dedicate time t to eliminate your debts early. If you want help and advice, don’t be scared to talk to a licensed insolvency trustee in your area. You might not need to file bankruptcy. Consultations are free, so take advantage of this free advice now.

J.P. Graci & Associates Ltd.
150 Colborne St. Suite 2,
Brantford, ON N3T 2G6
Brantford: 519-753-7361
Hamilton: 905-525-7077