Court Order gives more time to pay

Summary

The Supreme Court of BC acknowledged the impact of the Covid-19 pandemic and has allowed short-term payment relief for many people making payments on a consumer proposal. Payments may be temporarily postponed but must be made eventually.

Court Order

Previously, it was clear that a consumer proposal requiring monthly payments is deemed annulled if arrears add up to three payments or more.

Canada’s Superintendent of Bankruptcy obtained an order from the Supreme Court of British Columbia that allows more than just three payment arrears before a deemed annulment would arise.

Generally, the Court has ordered a deemed annulment now arises when there are three payments in arrears plus up to three more missed payments that were required to be made between March 13, 2020 and December 31, 2020.

How the Court Order Applies to You

Now you might be able to be in arrears up to five payments, but not six, before a deemed annulment would occur.

If you want, you might be able to defer some of your consumer proposal payments that are required to be made between now and December 31, 2020.

Eventually, you still have to make all missed payments, you would just be given more time to make them. Contact me if you have questions or need to take advantage of this.

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