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proposal acceptance

Although bankruptcy would be a viable option for me, I would much rather do a proposal. My question is, would creditors accept a proposal as low as .20 cents on the dollar? Over 5 years this would be $18000. According to my income, a bankruptcy would only result in a payment of about $1800 over 9 months.

Posted from: Ontario

One Response to “proposal acceptance”

A licensed trustee said...

It literally depends on the creditors that are involved. If you contcat a trustee in your area nd let them know who it is that you owe the trustee should be able to tell you the minimum amounts those creditors will accept in a proposal. Of course each case is slightly different, but for the most part the creditors have internal rules that they follow when voting on consumer proposals.

I am of the opinion that if you think you have the ability to repay a portion of your debt ina proposal then you should give it a try before you file for bankruptcy – at least ask the question like you are before you decide what you are going to do.