Bare trust: Big savings for eligible CDPCL clients
When a consumer meets with a licensed insolvency trustee (LIT), formerly known as bankruptcy trustees, to make a consumer proposal, the LIT has a number of legal obligations under federal law. These include legal duties owed to a consumerâ€™s creditors and the Superintendent of Bankruptcy. It is not the trusteeâ€™s role to assist the consumer obtain the most favourable result when making a consumer proposal.
At Consumer Debtor Protection of Canada Ltd. (CDPCL) our goal is to minimize the amount of money that a consumer has to pay under a consumer proposal. As a general rule, the more assets a person has in their own name, the more their creditors will want to receive in a consumer proposal. Therefore, some consumers doing a consumer proposal might be in a position to significantly reduce what they pay under a consumer proposal if they can convince their creditors that despite the fact that their name might be on title on a significant asset, they are effectively acting as a trustee for a beneficiaryâ€”typically another family member.
This situation might arise where a child purchases a home and they need a parent to guarantee the mortgage in which case the parentâ€™s name will appear on the title to the home. In our scenario, the parent doesnâ€™t live in the home and doesnâ€™t make any financial payments towards the property. If that parent were to make a consumer proposal the parentâ€™s creditors would want more money under a consumer proposal taking into consideration the amount of the parentâ€™s equity in the property.
In many of these situations CDPCL has persuaded creditors not to include propertyâ€”where the consumerâ€™s name appears on title when property is owned for the benefit of anotherâ€”when calculating how much money a consumer should repay under a consumer proposal. This can result in a consumer paying substantially less when making a consumer proposal.
CDPCL has been representing Canadians making a consumer proposal since 2004. Over the past 12 years our firm has made every effort to assist its clients obtain the optimal result when making a consumer proposal. Our firmâ€™s efforts speak for themselves. CDPCL has a A+ rating with the Better Business Bureau.