Consumer Proposal and the $75k limit.

Posted on Wednesday, June 4, 2008

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I think I read somewhere that if you are going to file a consumer proposal you can`t have more thank $75K in debt. Is this right?
If so, is there a possibility that the limit be raised soon and if it is going to be changed do you have any idea when that may happen?

Filed under: Consumer Proposals
 posted by Questions @ 7:55 am
1 Expert Comment:

 At June 12, 2008 | 7:02 am , Barton Goth GCO Bankruptcy Trustees Said...

Currently this is correct, you cannot have greater than $75k of debt (excluding the mortagage on your principle residence) to qualify to file a consumer proposal. You are also correct that there are some legislative changes in the works that will increas this from $75k to $250k, but they have not been adopted as active law yet, nor do we expet they will untill fall of 2008.

However, in the mean time if you are above the current limit you can always consider the use of a Division I Proposal instead. This is a very similar type of propsoal and can be used to accomplish the same purpose as a consumer proposal.

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