November 5th, 2008 by Questions
How much does a consumer proposal cost if it is ultimately rejected by the creditors?
Posted from: Ontario
November 06, 2008 at 10:04 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
The answer to this really depends on the trustee’s office you are using. Some trustee’s require a deposit up front prior to filing a consumer proposal and then you have to make your monthly payments from the day your consumer proposal is offered. So in that type of situation if the proposal is not accepted your deposit plus 2 payments would be lost.
Now not all trustee’s require a deposit. In my office for instance we simply require payments to be made from the date the proposal is issued, so all that is really at risk of being lost if the proposal is not accepted is the two payments.
For reference, most proposals are accepted, so if you use a trustee who regularly is involved in proposals, while the original numbers may have to be played with the creditors are usually pretty keen on helping someone avoid bankruptcy if it will result in them getting a higher recovery.
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