Division I proposal and unanticipated problems.
April 10th, 2007 by Questions
If I make a Division I proposal which is accepted and many months later I run into problems which temporarily reduces my income , do I get any leeway with the payments? Or will I be forced into bankruptcy for the original amount plus interest?
Example: I make a proposal to pay 1000 dollars a month for 5 years to settle a debt of 100,000 dollars. 3 years later I have a heart attack and can\’t work for 3 months and also have higher medical expenses. I stop paying the trustee.
Do I get ANY credit for the 36,000 dollars I have already paid? Or do I get hammered with the interest on 100,000 for the 3 years which leaves me deeper in the hole?
Are we taking a big risk by filing for a consumer proposal? Will it be better to bite the bullet and file for bankruptcy?