What happens if Debtor files for Consumer Proposal?
Walk through the steps of what Openroom needs to update the Rental Debt File when there's a Consumer Proposal
Weiting Bollu
Last Update a year ago
Who this document is for:
→ Anyone using Openroom’s Rental Debt Ledger product. More specifically, as a Tenant whose Landlord claims they owe rent.
Subscription Plan
→ Anyone on the Openroom Community plan
→ Anyone on the Openroom Plus plan
What's a Consumer Proposal?
There may be situations where a Creditor reported a Rental Debt Ledger file with Openroom but the Debtor files for a Consumer Proposal afterwards through a Licensed Insolvency Trustee or Consolidated Debt Organization.
A consumer proposal is a legal process in Canada, outlined in the Bankruptcy and Insolvency Act, that allows individuals with debt to consolidate and potentially reduce their unsecured debt obligations through a structured repayment plan. It's a formal arrangement negotiated by a Licensed Insolvency Trustee (LIT) with the individual's creditors, aiming for a more manageable repayment schedule.
You can read more about the Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3).
As a Creditor (someone owes me rental debt), what do I do?
You should participate in the Creditor's Voting Meeting to determine how much the Debtor will pay each Creditor.
Afterwards, you should update us through [email protected] on the new agreed upon amount that each Creditor will be owed.
As a Debtor (someone owes me rental debt), what do I do?
As someone who owes rental debt to another party, the Creditor, you should share information with Openroom to let us know that you have filed for a Consumer Proposal and the results of the Creditor's Voting Meeting.
Openroom updates your credit history file that we share with Credit Bureaus such as Equifax, to let them know that your file needs to be updated. In addition, we may stop interest calculations on your file from the date that you've settled with the Creditor(s) on your Consumer Proposal.
Information that we need to verify and update your file:
→ Creditor's Package
This package should have creditors on file that includes the Landlord as the Creditor and the results form the meeting to substantiate it.
Alternatively, you can request that the Creditor (i.e. Landlord) contact Openroom to update the file with the new amount.
You can contact us at [email protected].