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Frozen Accounts Consumer Proposal

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1.20K viewsConsumer Proposal
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Our proposal was signed and filed Monday.  Wednesday late afternoon we discovered our accounts had been frozen (including our kids which are attached to our accounts).  The money in our kids accounts is from their jobs and birthdays etc.  They are 16 and 19.  The trustee told us that he did not direct them to freeze our accounts and they did that all on their own (he says they are inexperienced and panicked).

 

The trustee is telling us that he has to ensure that the money is in fact from our kids working before he can tell our credit union to unfreeze our accounts.  The only debt we have with the credit union is our secured first mortgage.  We are ready to back out at this point.  He’s telling us if we do that then we will never be eligible to file another consumer proposal.  Any advice/help would be greatly appreciated.

 

Thank you

1 Answer

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  1. You can in fact file another CP if you withdraw your proposal before the expiration of 60-days after you filed your CP. So if you filed your CP on December 1st 2019, you have until January 14th 2020 to withdraw it. FYIm it takes 60 days for a CP to be deemed approved by your creditors and the bankruptcy court, which is why you’d need to withdraw it before then if you choose to do so.
  2. Where you cannot file another CP is if you default on your payments after your CP has been approved. You are not at that point yet, so this wouldn’t apply to your situation.
  3. Whether the funds belong to you or your kids is irrelevant. Your credit union should not have done what it did.

Your Answer

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  1. You can in fact file another CP if you withdraw your proposal before the expiration of 60-days after you filed your CP. So if you filed your CP on December 1st 2019, you have until January 14th 2020 to withdraw it. FYIm it takes 60 days for a CP to be deemed approved by your creditors and the bankruptcy court, which is why you’d need to withdraw it before then if you choose to do so.
  2. Where you cannot file another CP is if you default on your payments after your CP has been approved. You are not at that point yet, so this wouldn’t apply to your situation.
  3. Whether the funds belong to you or your kids is irrelevant. Your credit union should not have done what it did.
Category: asked December 12, 2019

1 Answer

0
  1. You can in fact file another CP if you withdraw your proposal before the expiration of 60-days after you filed your CP. So if you filed your CP on December 1st 2019, you have until January 14th 2020 to withdraw it. FYIm it takes 60 days for a CP to be deemed approved by your creditors and the bankruptcy court, which is why you'd need to withdraw it before then if you choose to do so.
  2. Where you cannot file another CP is if you default on your payments after your CP has been approved. You are not at that point yet, so this wouldn't apply to your situation.
  3. Whether the funds belong to you or your kids is irrelevant. Your credit union should not have done what it did.