If you are in default with the terms of your consumer proposal, your proposal will be annulled and your creditors can resume their legal collection actions.
Yes, you will keep control of your assets in a consumer proposal.
Tax refunds are not affected by filing a consumer proposal and will continue to be sent to you by the government.
No. In fact, a consumer proposal prevents your creditors from garnishing your wages and protects your income to ensure a reasonable standard of living.
Your employer was already contacted by your creditors so they could garnish your wages. In order to stop this wage garnishment, we will have no choice but to inform your employer of your consumer proposal. To avoid this, you should consider filing a consumer proposal before one of your creditors garnishes your wages. Otherwise you will have to continue paying off your loan.
Income taxes owed before the date of filing the consumer proposal can be included and are almost always dischargeable, meaning you will not have to pay them.
When you have fulfilled your obligations under the terms of the consumer proposal, you will receive a Certificate of Full Performance. You are then relieved of any further obligation to pay those creditors.
It varies by credit agency. In general, your credit score will be affected for 3 years after you have paid the full amount promised to your creditors in your consumer proposal. You may be able to rebuild your credit earlier, though. Our experts can show you how to fix your credit.
If you finished school more than seven years ago, you will not have to pay off your student loan because it becomes a dischargeable debt upon the completion of your consumer proposal.
Our Licensed Insolvency Trustees and Proposal Administrators are familiar with Canadian consumer proposal and bankruptcy law.