I have a question regarding consumer proposals. My spouse and my debt is over $150 000 and so we would have to file a division 1 consumer proposal. Are these accepted very often??? Also We owe the following creditors Royal bank, TD bank, HBC, PC financial, Sears, Capital one , citibank, AMEX, and MBNA. Are any of these above creditors more difficult to deal with?? Also if we end up having to declare bankruptcy if th eproposal falls through we will have significant surplus income will we be eligable for automatic discharge???

Posted from: British Columbia

One Response to “creditors”

A licensed trustee said...

While it is impossible to guarantee that a proposal will be accepted by your creditors, most trustees can tell you the terms required by the major creditors and help you structure a deal that will meet those criteria. The wild card is often something you fail to warn your trustee about – for example, let’s say you took a large cash advance a month ago and then filed for a proposal. In cases like this, acceptance is less likely because it looks like you are trying to take advantage of the system…

If for some reason youbecome bankrupt and you are required to make payments under the Surplus Income rules then it is unlikely you will be eligible for an Automatic Discharge. If your Surplus is significant you should assume you will remain in bankruptcy for 21 months.

Call a trustee in your area – they can help you sort this all out.