Avoiding preferential treatment of creditors
December 7th, 2011 by Questions
Because various financial institutions set their monthly minimum credit card / line of credit payments differently, how can I ensure that I am not accused of favoring when paying one creditor over another? For accounts with similar balances owing, one company would ask a minimum payment of $50 (interest + $10) while another would require a minimum of $350 (2% outstanding). Would paying the minimum balance to all creditors be fair?
I currently still make use of one credit card but will not be using it beyond this year. Should I be paying the full balance (about $2.6k) or should I start only paying the minimum required in line with what I pay the other creditors? I will be filing for consumer proposal in January/February (as I need to still file my 2010 tax return)
For a creditor who isn’t a financial institution, what would be considered preferential treatment? If I owe a friend $45,000 and have not made any principal/interest payments yet as the terms of repayment was rather flexible, will paying her $3k this month or next, prior to filing a consumer proposal (in Jan/Feb) be challenged by the other creditors?
I don’t want to make it harder for any creditor to accept my proposal
Posted from: Ontario
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)