Basket Proposal

March 1st, 2011 by Questions

Hello, I lost my job when i turned 65 and have no pension other than my CPP and Old Age Security. I am now going to be 71 this year and am unable to find work due to my age (no one will hire me). Two weeks before I lost my job (had no idea) I signed a bank loan for a vehicle (700/mth) they refused to take the car back, I have a mortgage (the house is for sale), and credit card debts – I was advised to do a ‘BASKET PROPOSAL” told to pay a trustee $200 (one time) and to stop making payments on my house, my car, and all credit cards – they told me once my house sold I would have to give them $15000.00 (basket proposal) and that was it – I don’t know when or if my house will sell or if there will be any profit. How can I sign a document stating I will pay this amount when I don’t have it – I currently go without food/meds just to pay credit card/loan bills, There is no equity in the house, I have no assets – I can afford my mortgage and food but that is it – what are options for me – could I be judgement proof due to my age and financial circumstances.
Thank you for your advise

Posted from: Ontario

Questions

One Response to “Basket Proposal”



, A licensed trustee said:

There is nothing wrong with filing a “lumpsum” proposal based on the proceeds from the sale of your house. Normally, the trustee will include a calculation that shows the estimated net proceeds that the $15,000 payment is based on.

Ask them to be careful with the wording – when we make this kind of proposal we offer the “net procceds from the sale estimated to be $15,000” rather than simply saying $15,000. The way your trustee is doing it you will have to pay $15,000 regardless of whether or not there is $15,000 available…

If there is no equity in your house then this plan won’t work – perhaps you should go and speak to another trustee if you’re not sure of the plan you have been presented by the people you have already seen.

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