Question: I have a judgment pending and in the meantime I am planning a consumer proposal. My question is should I proceed with the consumer proposal before the judgement or after the judgement? And what would be the difference before or after?
Answer: In most cases, if you know that a judgment will be registered against you in the near future, it is probably prudent to file the consumer proposal now.
When a consumer proposal is filed, there is an automatic “stay of proceedings”, which prevents most creditors from taking any further legal action. If you wait to file the consumer proposal until after the judgment, it is possible that your wages will be garnisheed, or other actions taken, so in most cases it is best to file your consumer proposal before you lose any money due to a garnishment.
However, if you decide to wait, the filing of a consumer proposal will stop most judgments already in progress, so even if your wages are already being garnisheed, you can still file the consumer proposal to stop it.
A licensed consumer proposal administrator can give you more information.