When you make a consumer proposal, your home and related equity is unaffected. You retain possession and control of your assets. The trustee and creditors will not take possession of your property and you will be able to keep any house equity that you have accumulated. They have no interest in any of your property.
When you make a consumer proposal, what you are essentially saying to creditors is, “you let me keep my home and I will make payments to you through my proposal.” This results in a win/win for debtors and creditors. The debtor is happy because they are allowed to keep their home and the creditors are happy because they are receiving payments and getting more than what they would if the debtor were to file for bankruptcy.
Who is eligible to file a consumer proposal?
Anyone whose total debts, excluding the mortgage on the principal residence, are less than $250,000. For larger debts a Division I Proposal is filed.
Two people can file a joint consumer proposal provided that they have a financial relationship and the majority of their debts are joint
Individuals that owe over $250,000 can file a Division I Proposal
Watch this video for more information about consumer proposals.
If you are in debt and want to talk to us about the best option for you, contact our office and book a free initial consultation with one of our licensed insolvency trustees.
