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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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1/3 figure

It has been mentioned several times on your site about proposals being accepted based on one third repayment. Is it one third of all debt or do creditors look at it as one third after trustees fees?

Posted from: Ontario

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One Response to “1/3 figure”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

This 1/3 is a rough estimate, but on average it is pretty consistent with what we see being accepted by the creditors right now, assuming normal conditions. As for 1/3 of what, it is typically 1/3 of the debt has to be offered and the trustee fees come out of that. But you must be careful as this is an average and is based on normal circumstances. This 1/3 rule is influenced primarily by what you are worth in a bankruptcy. So the more you own and the more you make the higher the creditors recovery in a bankruptcy. As we have to ensure that the recovery in a consumer proposal is greater than a bankruptcy, this in turn requires a greater offer in a proposal. The best way to determine what kind of offer will be necessary is to contact a local trustee.