I had moved to Alberta 4 years ago from Manitoba and got into a small accident where the person I hit sued me for personal injury. My insurance company said I had been here too long so they were not covering me. They ended up paying out this person 31,000 and have now gotten a Judgement against me to pay them back. There is no way I can afford to pay this back and my lawyer is telling me I can do a Consumer Proposal. My question is can I do a proposal on something like this? Besides this dept I have near perfect credit but this seems like the best option at this time. Please advise.

You can do a proposal or bankruptcy on the unsatisfied judgment debt, however, you may still be liable for payments afterward if you want to renew your license. Provinces such as Manitoba and Alberta take the position that driving is a privilege and not a right, and they may not license you unless you continue to pay them, even though they cannot legally pursue you for the debt after a bankruptcy or proposal.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca