CP vs. Bankruptcy
February 7th, 2011 by Questions
Based on what I have seen on this site, a CP needs to be at least 1/3 of the debt.
If lets say I had total debt over 300K and a third of that would be 100K.
Now if my income level is only a bit above the threshold and based on my calculations, it looks like my creditors would get $200 + $500 = $700 for 21 months, that totals to about $14,700 in bankruptcy.
While in a CP, based on my income/expenses the most I could possibly offer is $1000 per month for 60 months, that would total to $60,000.
In a CP I would be offering more than 4 times what they would get back in a bankruptcy.
Would this have a chance of being accepted or would I still need to offer at least $100,000 (1/3 of debt) for them to even consider?
Posted from: Ontario