Consumer Proposal – Deadline extension in response to Covid 19

With the support of the provincial and national associations of Insolvency and Restructuring Professionals, the Superintendent of Bankruptcy made a motion before the Chief Justice in the Ontario Superior Court of Justice. As a result, the Court has granted an extension of the deadline for making Consumer Proposal payments in Ontario, (under very specific circumstances).

Basically, the Order provides that Consumer Proposals active on April 27, 2020 will be granted an extra three months’ grace for payments that become overdue up until December 31, 2020. This means that Consumer Proposals will only be deemed annulled if they are in arrears for an amount equalling six months’ payments.

This is welcome relief to everyone currently in a Consumer Proposal and experiencing additional income challenges due to the pandemic.

(This post is a very brief description of the court order and is not meant to provide legal advice. Please discuss the effect of this order directly with your Licensed Insolvency Trustee for advice regarding your specific situation. Unfortunately, the relief by the Court does not apply to proposals that were already deemed annulled before April 27th).