Debt reduction – Consumer Proposal

January 23rd, 2011 by Questions

What is the standard or typical percentage debt is reduced when filing a consumer proposal? I have had an initial meeting and was told my debt would be reduced by 50%, but I have read on many websites that it could be reduced to 30%. Why would the trustee tell me that?

Posted from: Ontario

Questions

One Response to “Debt reduction – Consumer Proposal”



January 24, 2011 at 9:38 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

The problem is that every case is different. Some instances we ar able to go as low as 15% recovery, but that is low. I have other proposals that you have to offer repayment of 100% of the principle. Your trustee would have looked at your cash flow, what you are worth in a bankruptcy, the composition of your assets and what creditors are involved as all of this helps to determine what is likely.

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