COVID-19 Consumer Proposal Payment Arrears

stevewelker 19.03.2020


An order of the Superior Court of Ontario, on application of the Office of the Superintendent of Bankruptcy was passed on April 27, 2020 that allows individuals who filed their consumer proposals prior to June 30, 2020 the ability to miss three additional payments before their consumer proposal is deemed annulled.

Normally, if you fall three payments behind your consumer proposal is deemed annulled.

Now, as a result of the COVID-19 pandemic, you can miss an additional three payments between March 13, 2020 and December 31, 2020 before your proposal is annulled.

In other words, falling five payments behind is o.k., but if you fall six payments behind your consumer proposal will still be annulled.

Keep in mind, all missed payments must be caught up prior to the completion of your consumer proposal.

If you’re currently in a Consumer Proposal, please know:

  1. Even if your proposal is automatically annulled, we can help you revive it by making a payment arrangement within 30 days of the annulment.
  2. As a last resort, even if it has been more than 30 days since your proposal was annulled, your proposal can be revived, at your sole cost and expense, with the assistance of a lawyer by making application to the court. This typically costs between $1,000 and $1,500.
  3. If it is impossible for your to continue, or revive your consumer proposal, please call us to discuss the possibility of you filing for bankruptcy. We can help you resolve your debt problems one way or another.

If you’re in a Division 1 Proposal (more than $250,000 in debts) please contact us with any payment questions as different rules apply.

If you’re currently bankrupt, please know:

  1. As long as you make all of your required payments prior to your discharge date that your discharge will be unaffected and you’ll still finish your bankruptcy on time.
  2. If you fail to make all of your required payments your discharge from bankruptcy will be opposed. That said, your trustee can apply for an absolute discharge on your behalf once your payments have been made.

The most important thing is to communicate with us so that we can work together while we overcome this pandemic together.

Please direct any payment requests in writing to

Thank you, stay healthy.