case studies,  consumer proposal,  personal finance

Can you become a CPA after filing a consumer proposal?

I’m 25 currently and make 65k, but have around 48k in CC debt that resulted mostly from gambling. I’ve already self excluded from all apps, and plan on getting help through CAMH and gamtalk. I know I was stupid and i’m trying to get my life back in order. I am strongly considering a consumer proposal. I’ve never filed bankruptcy before, and currently have no assets.

The credit card debt is as follows.
RBC – 24.2K
MBNA – 12K
CIBC – 11.8K

I just have a few questions regarding this.

  1. I’ve heard RBC is notorious for denying consumer proposals, should I pay them down a bit, so they are under 50% and not the majority holder of my debt before filing a CP?

  2. Would a LIT help me file a CP even if I tell them most of the debt is from gambling?

  3. Also currently near the end of my CPA studies, would a CP affect me in becoming a CPA?

  4. I also recently just paid my student dues of $750 on one of the credit cards, would this cause any issues with me filing my CP?

  5. I share a RBC joint bank account with my mother. Should I close this account before filing the CP?


Victor Fong, Licensed Insolvency Trustee replies:

Question 1

Correct, they can be rigorous when they review consumer proposals which are submitted to them for review.

However, if you pay them and not the other creditors then you are technically giving them a preference over the other creditors.

Your LIT would have to report this to the creditors when he or she prepares your CP documents. And this information might displease your other creditors.

Question 2

Yes, you should have no problem finding an LIT taking you on, even if the debt was incurred through gambling.

But if the LIT is diligent, you’ll be informed that when creditors receive a CP, they review all transactions within the 12-month period preceding the CP filing date.

And when they see that the debt was incurred from gambling, they’ll almost certainly ask for an increase in your monthly proposal payment.

And if your conduct was considered especially egregious, they might outright refuse your proposal because they don’t want to deal with you.

Question 3

If you are applying for CPA membership in Ontario, Paragraph 27 of Regulation 7-1 (Admission to Membership, Obligations and Standing) stipulates that upon filing a consumer proposal, you’ll be required to contact CPA Ontario and disclose this fact to them. After they’ve reviewed your situation, they’ll either admit you, admit you subject to certain conditions, or refuse to admit you as a CPA member.

I’m quite certain that something similar applies to other provinces as well.

Question 4

It might, but I doubt it. Using credit to pay a professional membership due is going to be seen differently than using credit to conduct online gambling.

Question 5

Yes. Your mother can open an account on her own.



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.