August 14th, 2006 by Questions

I am going crazy trying to decide on a proposal or outright bankruptcy. Besides being able to look yourself in the mirror everyday, what is the point of a proposal. You\’re going to wind up on the same list, so why not completely clean up your mess? Are trustee fees different between each option?


One Response to “LESSER OF 2 EVILS”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

I find that a proposal brings more certainty (i.e. once accepted you know exactly what needs to be paid each month regardless of what happens to your income). The other primary advantage is that there is a reduced impact on credit and a significantly reduced stigma, both of which can make it much easier to rebuild your credit after bankruptcy. As for fees, they are different in both situations, both of them are calculated by a tariff that is contained within the Bankruptcy and Insolvency Act. The interesting thing is that depending on the specifics of both the bankruptcy and the proposal sometimes the calculation results in a higher cost in a bankruptcy, other times the proposal has the higher fees. For a breakdown of how these things are calculated I suggest you contact a licensed trustee.

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