Can You Do A Consumer Proposal Twice?

Can you do a consumer proposal twice? The answer to that will depend on whether or not you completed your previous proposal.

Your First Proposal Was Annulled

If your first consumer proposal was annulled due to your defaulting on your payments, then you won’t be able to file another one unless you obtain permission from the bankruptcy court. With the assistance of a lawyer, you can make an application to that court for an Order:

• • allowing you to complete the terms of your previous proposal (which would subsequently allow you to file a second proposal); or
  • allowing you to file a new consumer proposal which would include the creditors from your first proposal along with your current creditors.

Such an Order is at the discretion of the court – you will have to provide a reasonable explanation as to why you failed to complete the terms of your first proposal. Moreover, you will have to retain a lawyer to make the application on your behalf at your own cost.

Your First Proposal Was Annulled, But Then You Filed For Bankruptcy

If your first consumer proposal was annulled due to your defaulting on your payments, but you subsequently filed for personal bankruptcy to deal with the debts in your first proposal and you obtained your discharge from bankruptcy, then there won’t be any issues with you filing a second proposal to deal with your current debts.

You Completed Your First Proposal

If you completed your first proposal, there’s nothing stopping you from filing a second one. The only criteria you have to meet are the same ones you met when you filed your first proposal, namely:

• • You’re unable to pay your debts as they generally become due; and
  • Your debts, excluding the mortgage on your principal residence, don’t exceed $250,000.

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