Can I settle my consumer proposal early with my LIT?

_{consumer proposal, Licensed Insolvency Trustee, Quebec}

Yes, you can pay off your consumer proposal early in Canada! If you’ve got the funds, settle that debt sooner and enjoy less stress and a credit score boost. Chat with your Licensed Insolvency Trustee (LIT) to sort out the details and paperwork.

_{Wrap up your consumer proposal early with your LIT’s help!}

Question

Can I pay off my consumer proposal early? I’m interested in knowing if I can settle my consumer proposal before the agreed period ends.

From: Anonymous Question, Quebec (QC)

Answer

Absolutely, you can wrap up your consumer proposal early in Canada! If you’ve got the means to pay off the full amount owed to your creditors before the end of the agreed period, you could settle the debt sooner. Often, this can be negotiated with your Licensed Insolvency Trustee (LIT). Getting rid of that debt earlier not only frees you up from financial stress faster but could also give your credit score a nice boost sooner than sticking to the original schedule. Just give your LIT a shout to discuss your options and handle any necessary paperwork to make it all official.

From: Insider Scott

OSB Based Answer

Yes, you can pay off your consumer proposal early. According to the Bankruptcy and Insolvency Act (RSC 1985, c 11), specifically Section 66.31, a consumer proposal can be amended or terminated by the court or by the Trustee if all payments under the proposal are completed, or if the debtor makes a proposal to pay off the remaining balance in full before the end of the agreed period. Additionally, Section 66.34 allows for the amendment of terms of the proposal, which could include early completion if all parties agree. It is advisable to consult with your Trustee for the specific process and implications of settling your consumer proposal early.

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

References

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