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Effects of filing a consumer proposal in Nova Scotia

If I file a consumer proposal, will my wages be garnished?

No. In fact, a consumer proposal prevents your creditors from garnishing your wages and protects your income to ensure a reasonable standard of living.

If my wages were garnished by a creditor before I file my consumer proposal, will my employer be informed of my consumer proposal?

Your employer was already contacted by your creditors so they could garnish your wages. In order to stop this wage garnishment, we will have no choice but to inform your employer of your consumer proposal. To avoid this, you should consider filing a consumer proposal before one of your creditors garnishes your wages.

What happens if I cannot meet the payment terms of my consumer proposal?

If you are in default with the payment terms of your consumer proposal, your consumer proposal will be annulled and your creditors can resume their legal collection actions.

How would a consumer proposal affect my GST refunds and my tax refund?

Tax refunds and GST refunds are not affected by filing a consumer proposal and will continue to be sent to you by the government.

If I file a consumer proposal, do I have to continue paying off my student loan?

If you finished school more than seven years ago, you will not have to pay off your student loan because it becomes a dischargeable debt upon the completion of your consumer proposal.

Otherwise you will have to continue paying off your loan.

Do I have to pay my income tax debt if I file a consumer proposal?

Income taxes owed before the date of filing the consumer proposal can be included and are almost always dischargeable, therefore you will not have to pay them.

What happens to my assets in a consumer proposal?

You will keep control of your assets in a consumer proposal.

What happens when the consumer proposal is completed?

When you have fulfilled your obligations under the terms of the consumer proposal, you will receive a Certificate of Full Performance. You are then relieved of any further obligation to pay those creditors.

After completing my consumer proposal, how long will my credit score be affected?

It varies by credit agency. In general, your credit score will be affected for 3 years after you have paid the full amount promised to your creditors in your consumer proposal. You may be able to rebuild your credit earlier, though. Our experts can show you how to fix your credit.

These answers to frequently asked questions are provided as general information only. Each individual's situation is unique. Call us at 902-310-6060 for a free, no obligation, confidential consultation.

» My spouse / partner / family in a consumer proposal

 

© 2017 Grant Thornton Limited, Licensed Insolvency Trustees. All rights reserved.


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