Consumer Proposal and Windfall

If you filed a consumer proposal and now you have the money to pay it off in full, can anybody come after you for more money?

Keep Unknown Windfall After Consumer Proposal

If you file a consumer proposal and come unexpectedly into some money, you keep those funds for yourself. The key here is unexpectedly. You must not have known or likely known that you would be receiving this windfall when you filed your consumer proposal.  Provided that you did not lie when you filed your original consumer proposal, once the proposal is paid off, none of your creditors can come back later and ask for more money.

Examples of unexpected windfalls might include lottery winnings, an inheritance, a bonus or prize of some kind.

Pay Your Proposal Off Early

If you come into an unexpected windfall during the course of your proposal, you also have the option of paying off your proposal early. Paying off your proposal early would allow you to start on the road to repairing your credit that much sooner. Or you can keep or spend the money – it is yours to control. Our advice – use your unexpected financial gain wisely.

You should contact your trustee to discuss your options. If you are wondering if a consumer proposal is the right option for you, contact one of our expert trustees in bankruptcy – they would be happy to answer any question about your personal situation.

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