Consumer proposal for the debt of $80,000?

January 3rd, 2006 by Questions

My and my wife’s debts are almost $80,000 (credit cards and lines of credit). Due to recent decrease of the working hours on my job (became part-time) and my wife is on maternity leave we have to do something about it. Our net income is about $3,500 a month. If we offer $20,000 to $25,000 to our creditors (5 in total) in the consumer proposal, do you think that creditors would accept that amount or refuse it?

Thank you

Questions

One Response to “Consumer proposal for the debt of $80,000?”



January 04, 2006 at 3:11 pm, Barton Goth, GCO Inc. Bankruptcy Trustees said:

Assuming you do not have any non-exempt property and you have at least 3 people in the household (or soon will have) this sounds like a very reasonable offer. If all this holds true you would be offering up approximately a 17 % recovery to your creditors. While 17% may not sound like a great deal, to the creditors is often preferred to receiving far less in a bankruptcy scenario. The only thing that could really change this would be your property. I recommend contacting a licensed trustee in your area and he will be able to outline what level of exemptions you are entitled to in your area and they will then be in a much better position to predict how the creditors would react.

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