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Lump Sum vs Monthly Payments

In a consumer proposal do the payments have to be monthly? My income is very tight without my debts due to alimony payments to my ex and I am not sure I can pay a monthly payment of any real substance however every year I do get a large income tax return. Is it possible that a lump sum payment be made instead of monthly payments each year?

Posted from: Nova Scotia

One Response to “Lump Sum vs Monthly Payments”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

While this technically is possible, it is doubtful that the creditors would cooperate with just the vesting of a tax refund, especially when you consider the first year tax return would be lost in a bankruptcy automatically.

However, you really should discuss the possibility of a consumer proposal directly with a local trustee and they will be able to look at things in more detail and give you an idea of what would be required.