Can you add debt to a consumer proposal?

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In Canada, once you’ve got a consumer proposal set up, it’s generally fixed for the debts you originally included. Have new debts appeared? They won’t be part of that proposal, so you’ll need to address them separately. If these new debts show up early in your proposal period, you might be able to adjust the agreement. However, this requires creditor approval, and it’s not guaranteed. Reach out via phone or chat if you have questions. Not all trustees can be trusted.

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Add Debt To Consumer Proposal Question

Can you add debt to a consumer proposal? Can I add new debts to an existing consumer proposal, or is it only for the debts I included originally?

From: Anonymous Question
Location: Regina, Saskatchewan (SK)
Category: consumer proposal

Add Debt To Consumer Proposal Answer

Once you’ve got a consumer proposal set up in Canada, it’s usually set in stone for the debts you had when you first filed it. Got some new debts popping up on you? They won’t just roll into that proposal; you’ll need to handle them separately. Now, if these new debts appeared quite early in your proposal period, there might be a way to tweak the agreement. This involves having a chat with your Licensed Insolvency Trustee and getting your creditors on board. But heads up—this isn’t a walk in the park. It can get a bit complicated, and there’s no guarantee the creditors will say yes. Hence, it’s a bit of a gamble.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

You cannot add new debts to an existing consumer proposal. The debts included in a consumer proposal are those that were listed at the time of filing. According to the Bankruptcy and Insolvency Act, specifically Section 66.12, once a consumer proposal is filed, it binds creditors only to those debts declared in the proposal. New debts incurred after the filing cannot be included in the proposal.

From: OSB Helper

Related Questions to Adding Debt To A Consumer Proposal

Here are the top 5 most frequently asked questions related to adding debt to a consumer proposal, based on the provided sources and general online trends:

1. Can you add new debts to an existing consumer proposal?

• No, you cannot add new debts to an existing consumer proposal[1][2][4].

2. What happens if you incur new debts after your consumer proposal has been accepted?

• You are responsible for paying these new debts in full, outside of your consumer proposal agreement[1][2][4].

3. Is it possible to amend a consumer proposal to include new debts?

• Any significant changes, including adding new debts, would require an amendment that needs to be voted on by your creditors, which could be rejected[2][4].

4. How do new debts affect your consumer proposal payments?

• New debts are not included in your consumer proposal, and you must pay them separately and in full[1][2][4].

5. What are the implications of adding debt to a consumer proposal on your credit rating?

• Adding debt or amending a consumer proposal can negatively impact your credit rating, although it is generally less damaging than bankruptcy[2][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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