Proposals deal with all of your unsecured creditors (creditors that don’t hold any assets as collateral for your debts) including the Canada Revenue Agency and other government debts. When filing a proposal it is important to list all of your creditors. One of the main requirements of a proposal is that all of your unsecured creditors are treated equally.The rights of your secured creditors (creditors that do hold assets as collateral) are not affected by the proposal. This means that if you wish to maintain possession of the encumbered asset that you will have to continue paying these creditors outside of the proposal or be willing to surrender the asset that they hold as collateral.
Find out if filing a consumer proposal is right for you.
- Chris Welker
