Consumer Proposal
Hi everyone,
I’m looking for some insight from anyone who has navigated a Consumer Proposal (CP) in Ontario as a high-earner, specifically when the "reason for insolvency" involves the stock market.
I am earning $115k/year (household income is ~$150k). We own a home about $80k in equity. Despite the solid career, I am carrying $120k in unsecured debt, primarily with TD and BMO.
Over the last 2 years, I lost approximately $100k+ in trading. I want to emphasize that I did not use bank credit to fund the trades. The losses came from my own RRSP, a severance package, and tax refunds. I basically burned through all my personal liquid assets trying to "fix" my situation before realized the debt interest was a treadmill I couldn't outrun. I haven't traded using credit money but the cost-of-living debt left over is now unmanageable.
The Concern:
I’m worried that because I spent my own savings (RRSP/Severance) on trading instead of paying down my loans, the creditors (especially TD, who holds 60% of the debt) will reject the proposal on "bad faith" grounds.
Has anyone with trading losses filed a CP where TD was the main creditor? Did they push for a much higher recovery rate because of the trading history or refused saying that u should have paid debt instead of trading