Locked in Pension Fund for Consumer Proposal
December 30th, 2008 by Questions
I am thinking that I may need to either fiel bankruptcy or a credit proposal. My wife`s business is in big trouble from teh economic meltdown. She will likely have to go bankrupt and we have many shared debts. I owe total about $60k that includes joint with her.
B/c she has lost her income from the business as well we have very little money now. I have decent income (50k) and she has like 6K now so her surplus income will be very little (2 kids) = $100/mth for her.
I DO NOT want to go bankrupt but cannot handle the cc debts as well as the rest.
I have from a former job $25k in OMERS. Could I seek to have that money withdrawn through hardship to pay the consumer proposal right up front. I think the most I could offer under a Consumer Proposal would be at best 20 cents on the dollar. Using the surplus income model, if I also had to file bankruptcy (not her fault but her failing business is going to drag us both down possibly), my surplus would be another $200 a month. For 60 months, I could offer $300/mth which would be $18k. I will do anything to avoid bankruptcy!!! So could I say – take $25k from my OMERS and I can at least avoid bankruptcy for one member of our family going forward?
Posted from: Ontario
One Response to “Locked in Pension Fund for Consumer Proposal”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
December 31, 2008 at 9:02 am, A licensed trustee said:
It’s to your credit that yo are considering withdrawing funds from a locked-in pension to offer to your creditors, but frankly, I think it’s a bad idea. The reason the funds are locked is so that they will be available when you retire – withdrawing them for any other purpose defeats the process.
That being said, I think you can offer a reasonable proposal without this lump sum – contact a trustee in your area and go and see them. Based on what you’ve posted I think they will be able to find a way to keep you from filing for bankruptcy.