Home » we we Blog » Debts You Can and Cannot use in a customer proposition
You are wondering if your customer proposition may be the solution that is right you to definitely eliminate the money you owe. For several in Ontario, it’s. As an affordable payment plan, permits Canadians to realize credit card debt relief and defense against creditors. A customer proposition is a scheduled system underneath the Bankruptcy & Insolvency Act which allows you to definitely produce a settlement proposition to creditors so long as the money you owe (excluding your home loan in your house) usually do not go beyond $250.000. In addition just specific debts can be incorporated into a consumer proposition filing. We’ve outlined below a whole set of which debts you can and cannot include in a customer proposition in Canada.
Debts incorporated into a customer proposition
A customer proposal eliminates credit card debt. A credit card debt is|financial obligation that is unsecure any kind of financial obligation that isn’t guaranteed by a secured asset, like a residence, as an example. In a customer proposition, you can add the debts that are following
- Bank cards
- Credit lines
- Personal loans
- Payday advances
- Select student education loans
- Tax debts
You can easily register a customer proposition as a kind of when your total debts don’t go beyond $250,000 (not including mortgages for a major residence). If for example the un-secured debts surpass this quantity, speak with us in regards to a Division I proposal additionally an alternative available to customers beneath the Bankruptcy & Insolvency Act.
Can we add secured debts?
No. Secured debts are fully guaranteed by a valuable asset and are usually excluded consumer proposition. You can choose to either continue paying your secured creditors to keep the asset, or stop paying the secured creditor and surrender the asset to the creditor if you file a consumer proposal. (more…)