What Can a Consumer Proposal Include?
A consumer proposal can encompass most unsecured debt, which is debt not backed by collateral. Common types of unsecured debt included in a consumer proposal are:
- Lines of credit
- Personal loans
- Credit cards
- Department store credit
- Payday loans
- Income tax debts
- Certain student loans (if you have been out of school longer than seven years)
What Can’t a Consumer Proposal Include?
There are a few types of unsecured debt that a consumer proposal does not encompass (unless a creditor agrees to include it), such as:
- Child and spousal support payments
- Court fines and penalties
- Debts due to fraud
- Certain student loans (if you have been a student within the last seven years)
A consumer proposal does not include payments on secured debt, such as a mortgage or car loan.