A Consumer Proposal is for individuals whose debts have become unmanageable, but are still able to make some form of payment to creditors. With revisions to their payment plans they will be able to pay back their unsecured debts partially or in full within a maximum term of five years.

When your total debts (excluding the mortgage on your principal residence) exceeds $250,000 you will not be eligible to file a Consumer Proposal. However, you would be able to file a Division I Proposal. Just like a Consumer Proposal, you will be making a formal offer to creditors to settle your unsecured debt. Upon filing a Division I Proposal, your Licensed Insolvency Trustee will call a First Meeting of Creditors (FMC) within 21 days. At that...

Your spouse will not be affected by you filing a Consumer Proposal. If there are joint assets or joint debt, it may be appropriate to file a joint proposal as the non-filing spouse will still be liable for joint debt.

In making a proposal to your creditors, it is important you make your monthly payments on time. If you default on three payments during the term of the proposal, the proposal is annulled. This means the proposal is brought to an end by default. In certain circumstances, an amended proposal may be filed prior to the default occurring. However, when a default occurs and an amended proposal is not filed and accepted by the unsecured creditors in time,...

No, filing a Consumer Proposal will have no affect on your job. Section 66.36 of the Bankruptcy and Insolvency Act states that, “No employer shall dismiss, suspend, lay off or otherwise discipline a consumer debtor on the sole ground that a consumer proposal has been filed in respect of a consumer debtor.”

As you do not typically give up your assets in a proposal, you will continue to be responsible to file your annual Income Tax returns. Any eligible tax refunds for years before the proposal will continue to be sent to you by Canada Revenue Agency, unless you have other tax debts owing to them. Any tax debt arising in the tax years prior to the proposal year will be included as a creditor in the proposal. For the year of the proposal and future years...

Friends, family, and caregivers can play a vital role in supporting seniors who are struggling financially. Firstly, they can look for signs of financial distress, such as bills piling up, frequent visits to casinos, or neglect of essential expenses like groceries or home repairs. Engaging in open and non-judgmental conversations with the senior about their financial situation is crucial. Offering practical assistance, such as helping with budgeting,...

Ignoring debt issues as a senior can worsen financial problems, leading to creditor actions, asset seizure, and damage to credit ratings. Upon passing away, debt is handled by the executors, burdening them with settling outstanding debts using estate assets. Failure to address debt before death can possibly result in creditors denying debt write-offs, leaving heirs liable for balances, or needing to refuse an inheritance. Seniors can mitigate...