What are secured and unsecured creditors?
Secured creditors have a charge on an asset, such as a mortgage on a house, or a bank or finance company holding security on your car. Secured creditors are usually not included in a consumer proposal. Unsecured creditors are those that have no charge on an asset, such as credit cards, bank account overdrafts, Canada Revenue Agency for income tax arrears and lines of credit. Consumer proposals are designed to deal with these and any other unsecured creditors you may have.
