case studies,  consumer proposal

Can I withdraw a consumer proposal?

I have around 120k in debt from personal loans and credit cards. I filed a consumer proposal last month and will know the results by the end of next week.

But I was able to get a new job after the proposal and my wife has also got another job and we now make reasonable amount to pay the total debt in 2 yrs without a proposal. Sorry, both updates happened not before we filed the proposal.

What do we do in this case? Can I withdraw my proposal before being accepted by the creditors or court?

Will the withdrawn proposal stay on my credit report as well?

Victor Fong, Licensed Insolvency Trustee responds:

You can withdraw the consumer proposal before it’s deemed approved by your creditors and the bankruptcy court (60 days after the date of filing if your creditors have no issues with it).

However, a record of your consumer proposal stays on your credit history for 6 years irrespective of whether you withdraw your consumer proposal or follow through with it.

Therefore, withdrawing your consumer proposal will not reverse the impact it’s already had on your credit.

Victor is the President of Fong and Partners Inc. He is a Licensed Insolvency Trustee and Chartered Professional Accountant. With many years of experience in the insolvency field, Victor has been involved in both corporate and consumer insolvency engagements. Previously with a large national firm, Victor founded Fong and Partners Inc. so that he could dedicate his professional life to help people from all walks of life to deal with their debt.