Which debts are included in a consumer proposal or bankruptcy?

Key Points

• Which debts are included in a consumer proposal or bankruptcy?
• So what do you do about it?

Which debts are included in a consumer proposal or bankruptcy?

We’ve already talked about the difference between secured and unsecured debts, but what happens if you have a debt that you forgot about or didn’t even know about?

We certainly aren’t suggesting that you forget about a creditor on purpose, but this does happen from time to time and as long as it is within reason we can help.

After filing a consumer proposal or bankruptcy you may:

• Be contacted by a creditor you forgot about
• Be contacted by a collection agency you’ve never heard of
• Pull a credit report and see something you forgot/never heard of
• Remember a debt that you had previously forgotten about

Don’t worry! These debts are included. The key is that you owed the money prior to the date of filing the proposal or bankruptcy.   As long as that is the case, you will not owe the debt.

Read our guide – What happens to debt when someone dies in Canada?

 

So what do you do about it?

You need to notify your Trustee office immediately with as much information as you have access:

• Phone number
• Reference number
• Creditor name/collection agency name
• Screenshot of your credit report
• Email address of creditor

If you aren’t able to get all of that info, that’s ok too. The more you have the faster we will get them to stop.

Most importantly, stay in touch with your local Licensed Insolvency Trustee office!