Consumer Proposals & Sponsorship
If you were born in a different country and are here on a sponsorship, a common concern is whether your status will be impacted by a consumer proposal.
Another common worry is whether filing a consumer proposal can result in an adverse impact on the ability to provide sponsorship for others wishing to immigrate.
Unfortunately, this worry can cause those with financial difficulties to avoid seeking help for the troubles, resulting in the problems escalating.
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Consumer Proposals Are Safe
The most important thing to know is that consumer proposals will not impact your ability to offer sponsorship.
Of course, there are other situations which can preclude you from being a sponsor such as bankruptcy without discharge.
It avoids the risks of losing your ability to sponsor someone due to debt and still enables you to pay off the amount you owe on good terms.
Risks of Bankruptcy to Sponsorship
Whereas consumer proposals still allow you to sponsor those out of the country for immigration, bankruptcy precludes you from taking this step.
Since it takes a significant amount of time to discharge bankruptcy – at least nine months – this will seriously slow down any immigration plans you may have developed.
By taking action as early as possible, you keep all of your financial options open.
Speaking with a Licensed Insolvency Trustee (LIT) is a helpful first step to deciding what to do in the future.
Through a no-cost, confidential consultation, they can outline your options and provide you with real and actionable advice specific to your situation.
It is never too early to take steps to protect your financial interests – a LIT can help you do just that.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal