consumer proposals in ontario
Question: I have the following unsecured debts in my name and desperately need an answer as I have not missed any payments yet but I will shortly if I don’t get some help fast:
30,000.00 credit card
10,000.00 credit line through Canadian Tire Bank (it was through an old credit card that I no longer have, but still have the credit line)-the credit card was paid off and de-activated.
5,000.00 credit card – I can manage this one
I have secured debt:
10.000.00 – this is a truck loan in good standing for a year now.
My question is: Can I make a consumer proposal for the 30,0000 credit card debt and the 10,000.00 credit line and keep the 5,000 credit card and the 10,000.00 truck loan? The trucks value is about 13,000.00 after being paid off in another 4 years. I rent and I don’t own. I am single and also have one other asset 1 car being about 2500.00 my son drives this one but it is in my name. Can I pick and choose what consumer proposals I want or does it have to all or nothing? Please let me know a.s.a.p
thank you for taking the time to read this.
Answer: A consumer proposal must be made to all unsecured creditors; you cannot pick and choose. You may continue to pay secured creditors (such as car loans) if they agree, but you cannot include one credit card in a consumer proposal and not another credit card.
Given your level of debt your best option may be to file a consumer proposal for all of your debts, to give you a fresh start. A trustee in Ontario can give you more information.
If you want to pick and choose, you either need to get a debt consolidation loan to pay off as many debts as you can, or try a debt management plan through a non-profit credit counsellor.