Consumer Proposal & Child Support Income
Hello, I am planning on filing a consumer proposal but would like some clarification. I have a court order for receiving child support for $300/month as well as a court order for fixed arrears in the amount of $5000/year for the next 5 years. The support payor is in default and has not paid since Dec/08 one of the reasons I cannot make ends meet. I have started proceedings to enforce payment but am not expecting to see any of the money in the near future or at all for that matter… If my proposal is accepted and the enforcement for child suport payments are successful the amount I would receive could be quite substancial, how would this affect my proposal now and down the road?
Thank you for your time, it`s much appreciated.
Posted from: Ontario
Essentially this must be considered when you are filing the proposal. A projection must be done to determine what your average income would be if you filed a bankruptcy. This in turn is used to determine what you would be worth to your creditors if a bankruptcy were filed, which is then used to determine what type of an offer must be made to your creditors in the proposal.
So other than having to use this information to determine what must be offered there really won’t be any major impact on the filing of the proposal.