What normally happens once a consumer proposal is completed, can any of the creditors listed in the proposal come back after me and sue me for the outstanding debts?
completed consumer proposal
Posted on Friday, November 3, 2006
posted by Questions @ 10:32 am
1 Expert Comment:
At November 3, 2006 |
10:42 am
, Barton Goth, GCO Inc. Bankruptcy Trustees Said...
By filing a consumer proposal you are entering into a legal arrangement to negotiate your debts over a period of time and as long as your proposal is accepted by creditors, approved by court and you keep up with all your commitments under the proposal you are legally cleared from all of the debts contained in the proposal and once your proposal is successfully completed your creditors cannot come back later and sue you. The only caveat is that there are certain types of debts that cannot be compromised by filing a consumer proposal or a bankruptcy in Canada, (a good example is child support). So it is important you review things with a licensed trustee to determine if the filing of a proposal is going to be beneficial given your current situation.
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