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Proposal and Bankruptcy in Alberta

 
 

Posted on Saturday, July 07, 2007

Question: My husband filed a consumer proposal 2 years ago. I chose not to as I felt I could pay these debts. We are now in a situation where we can't meet our monthly obligations, never mind the debts I owe. What is the best plan now? We owe over $46,000 (including proposal). Is anulling the proposal and filing for bankruptcy an option?

Answer: You and your husband have three options.

First, he can continue on with his proposal. You could then file your own consumer proposal, file bankruptcy, or deal with your debts in some other manner.

Alternatively, your husband's proposal could be annulled, and he could file bankruptcy. Your options remain the same.

It is not possible to annul a proposal and then file another one, unless you have the prior permission of the bankruptcy court, so in your case that is not an option.

These are complicated decisions, so we suggest you contact an Alberta bankruptcy trustee to meet with you and review both you and your husband's situation in more detail to determine which option is best for both of you.

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