Can I add new debts to my consumer proposal?

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Starting a consumer proposal is like shaking hands on a debt plan with creditors. Adding new debts isn’t part of this deal unless you make a new proposal, which can complicate things. Be careful with spending: new debts can endanger your current plan and lead to bankruptcy.

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Question

Can I add more debt to my consumer proposal after it starts? I’m wondering if I can include additional debts in my consumer proposal once it’s already in progress.

From: Anonymous Question, Saskatchewan (SK)

Debt Insiders Answer

Once you’ve started a consumer proposal, adding more debt into the mix isn’t an option. Think of it as making a handshake agreement with your creditors on how to tackle some of those pesky debts over a certain time period. If you end up with new debts after this agreement begins, they’re not part of the deal unless you craft a new proposal—and that’s like getting everyone back to the table and ringing up the court for an okay. It’s super important to keep a tight rein on your finances during this time because stacking up new debts can put your current proposal at risk. You don’t want things spiraling toward bankruptcy. So, keeping your financial ducks in a row is the way to go!

From: Insider Scott

Office of the Superintendent of Bankrupty (OSB) Answer

No, you cannot add more debt to your consumer proposal once it has started. According to the Bankruptcy and Insolvency Act, a consumer proposal must include all debts existing at the time of proposal filing. Any additional debts incurred after the proposal has been accepted cannot be included. Refer to Section 66.31 of the Bankruptcy and Insolvency Act for specific regulations on this matter.

From: This answer is provided by scanning the OSB Bankruptcy & Insolvency Act and related directives

Related Questions

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

1. Can I add new debts to my consumer proposal after it starts?

• No, you cannot add new debts to your consumer proposal after it has been accepted by your creditors.

2. What happens if I incur new debt while I am in a consumer proposal?

• You cannot include new debts in your existing consumer proposal; you will need to manage these debts separately or consider other debt relief options.

3. Can I modify my consumer proposal to include additional creditors?

• No, once a consumer proposal is accepted, you cannot modify it to include additional creditors or debts that were not part of the original proposal.

4. How do I handle new financial obligations while in a consumer proposal?

• You must manage any new financial obligations outside of the consumer proposal, as they cannot be included in the existing agreement.

5. What if my financial situation changes and I need to add more debt to my proposal?

• If your financial situation changes, you may be able to amend your consumer proposal to adjust payments, but you cannot add new debts to the proposal; any amendments require creditor approval.

References

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