Can I pick which Creditors I include in a Consumer Proposal or Do I have to include all my Creditors?
When individuals are facing financial difficulty it can often be just one or two of their creditors that are causing them the biggest burden. It is a common thought that if they could just do something about a few creditors then they would be fine.
When filing a bankruptcy or consumer proposal you cannot pick and choose the debts you want to include.
It is your obligation to disclose to your Trustee all of the companies and/or individuals that you owe money to so that they can get a true assessment of your situation.
Even though you have to list all of your creditors on your bankruptcy documents, there are some creditors that will survive your bankruptcy. This means that after you receive your discharge, and your bankruptcy is completed, you will still owe those creditors, including interest.
These debts are listed in the Bankruptcy Act and your Trustee will be able to tell you if any of the debts that you have will still be payable after bankruptcy. The following debts commonly survive a bankruptcy:
- Recently acquired student loans (less than 7 years old)
- Court fines
- Alimony and/or child support
There are also some debts that you may choose to continue to pay in very specific circumstances. This may include a debt that is co-signed by a friend of family member. In that case, co-signor would be paying that creditor in full as they are equally responsible for the debt. For this reason, even though you still must list the debt in your bankruptcy, arrangements can be made to maintain the payments.
If you have questions about your creditors and whether they can be covered by filing for bankruptcy it is important to seek out the advice of a licensed Trustee in bankruptcy.
