Consumer Proposals

January 31st, 2012 by Questions

I have about $100,000 in credit card debts.
I am no longer working and my pension from my job is only $1500 per month.
My husband & I jointly own a home and no longer have a mortgage but we are not connected financially, ie. he deals with different banks than I do because of my bad credit history.
Can a consumer proposal help me out
WITHOUT MY HUSBAND FINDING OUT?
In 2 more months I will be collecting CPP and may get about $500-$600 more per month.
What do you think of my situation??

Posted from: British Columbia

Questions

One Response to “Consumer Proposals”


January 31, 2012 at 1:51 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Here is the challenge, the residence. The reason that the house is an issue is that when you craft a consumer proposal you legally have to offer at least as much as would be available in a bankruptcy. The challenge is that in a bankruptcy you are only permitted to have a principal residence: up to $9,000 (or $12,000 in Greater Vancouver or Victoria). So the result is that in a bankruptcy, your creditors will likely get a substantial percentage recovery (I can only assume it would be payment in full given the average price of housing in most major municipalities in BC). If in a bankruptcy the creditors are going to get paid in full, you may still be able to do a consumer proposal but you would have to make sure the creditors get paid in full under the proposal as well.

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