Options to Bankruptcy

August 19th, 2009 by Questions

My parents currently have quite a bit of unsecured debt between the two of them. They recently sold their home to try and use some of the equity to clear up some debt. However, even after doing this, they will still owe approximately 80K in debt. Also, my mum`s income has been reduced due to disability, so they will still have trouble keeping up with payments. They are in their late 50s. Would a consumer proposal work best in this situation?

Posted from: Ontario


One Response to “Options to Bankruptcy”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

It is difficult to say whether or not the filing of a consumer proposal would work best for your parents without looking at their financial situation in more detail. A consumer proposal is the most common way to deal with unmanageable debt and still avoid bankruptcy, but what really needs to be done is for your parents to sit down with a local trustee and review things like their cash flow, the composition of debts etc. This way the trustee can evaluate whether or not your parents position would be benefited by a proposal, and answer some of your parents questions about the proposal process.

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