Ontario bankruptcy or proposal

December 14th, 2006 by Questions

Unsure about doing a consumer proposal or a bankruptcy. My take-home pay is $2300, I am single, no kids and live with parents. I help with some bills usually about $200/month and car insurance is $150/month. My car is 1998 -worth about 4500. My debt is about $35000. I have about $4000 in an account not in my name -my pay gets deposited into this account.

Do I have to provide bank statements to show my pay? Will I be asked to do a proposal instead of bankruptcy since I can make good monthly payments?

I would do proposal if I could offer as little as possible say 30cents on the dollar so I have some money to start my life once this nightmare is over! Thanks for any help. Thank you for this wonderful site!!


3 Responses to “Ontario bankruptcy or proposal”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

Firstly, it is always your choice whether to file a consumer proposal or a bankruptcy and most trustees will respect that. While they may give recommendations the decision should ultimately be left up to you. Having said this, I always believe that if you are in a position to avoid the filing of a bankruptcy then you should strongly consider it (and while 30 cents may be a bit low based on your available montly cash flow, I wouldn’t be surprised if you could offer somewhere in the range of $0.40 to $0.50 on the dollar of you unsecured debts but you really need to sit down and review things in detail with a licensed trustee to determine what is feasible).

In terms of verifying pay, you will most likely either have to provide bank statements or a copy of your pay stub and this will have to be done for the first 9 months of either process (i.e. bankruptcy or proposal). Other than that we are glad that you found this site useful and if there is anything else we can do or recommendations you may have please let us know.

, Anonymous said:

Thanks! I know that I sound cheap about offering 30cents. MBNA got tired of me and after 1.7years of telling them to sue me, they settled for $2700 on $17000. Honestly -no lie!! But so far the others aren’t budging!!

Should I hurry up and file before the new law? Sounds like I wouldn’t get a discharge after the 9months -now it will before 21months. Will it affect me if I’ve already filed?

You guys are great!!!!

, A licensed trustee said:

We have been waiting for the new laws to come into effect for well over a year now, and although the government has indicated they want to proceed, it is unlikely the new laws will come into effect before the middle of 2007 at the earliest, and more likely later in 2007 or 2008, if at all.

Again, I would suggest you meet with a trustee to review your options in detail, and then you can make an informed decision.

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