What Debts Are Included In Consumer Proposal?

Consumer Proposal Help

In case you file a consumer proposal in Ontario, try to 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 can easily properly evaluate your situation and will help you with your best option.

Debts That Are Included

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

Unsecured Creditors

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

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

Secured Creditors

A secured creditor that holds a charge or security over an asset, such as a 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’re having a difficult time keeping up with your debt repayments and are contemplating of filing a consumer proposal, contact an administrator today. They can tell you if you qualify or not. A Licensed Insolvency Trustee is your better choice for get out of debt.