Can you have 2 consumer proposals at the same time?

_{consumer proposals, court approval, PEI}

In Canada, only one consumer proposal can be active at a time per the Bankruptcy and Insolvency Act. If you want to start a second proposal, you must first get court approval, which will end your current proposal in favor of the new one.

Reach out via phone, text or live chat if you have any questions.

Show Table of Contents

_{Only one consumer proposal allowed without court approval.}

Consumer Proposals Question

Can you have 2 consumer proposals at the same time? I’m curious if having two consumer proposals at the same time is allowed or possible.

From: Anonymous Question
Location: Charlottetown, PEI (PE)
Category: consumer proposal

Consumer Proposals Answer

In Canada, juggling two consumer proposals at the same time isn’t an option. According to the Bankruptcy and Insolvency Act, you’re only allowed one active consumer proposal at any given moment. If you’re thinking about starting a new proposal while another is still in play, you’ll need to get court approval first. Once that’s sorted, the existing proposal will be wrapped up in favor of the new one.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

No, you cannot have two consumer proposals at the same time in Canada. According to the Bankruptcy and Insolvency Act (RSC 1985, c 11), a consumer proposal is a legal process where a debtor makes an offer to creditors to settle debts for less than what is owed, and it is stipulated that a debtor may only file one consumer proposal at a time. Once a consumer proposal is in effect, any subsequent proposal cannot be filed until the first one is completed or the proposal is revoked. For detailed reference, see the Bankruptcy and Insolvency Act, Sections 66.21 to 66.24.

From: OSB Helper

Related Questions to Court Approval

Here are the top 5 frequently asked questions related to the concept of having two consumer proposals at the same time, tailored for the Canadian context:

1. Can you file a second consumer proposal if the first one was not accepted?

• No, you cannot file a second consumer proposal if the first one was not accepted; you would need to consider other options like bankruptcy[2][4].

2. How long after completing a consumer proposal can you file another one?

• You cannot file another consumer proposal until the previous one is fully completed and you have received your certificate of completion[2][4].

3. What happens if you default on a consumer proposal? Can you file another one?

• If you default on a consumer proposal, it is typically annulled, and you may need to consider bankruptcy or other debt solutions; filing another consumer proposal is not an option in this case[2][5].

4. Can you have multiple consumer proposals for different debts?

• No, a consumer proposal consolidates all eligible unsecured debts into a single agreement; you cannot have multiple proposals for different debts[2][4].

5. Is it possible to file a consumer proposal while still paying off a previous one?

• No, you must complete the payments and obligations of the first consumer proposal before you can consider filing another one[2][4].

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

References

_{Table of article references}