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Consumer Proposal for Unemployed

My husband lost his job since 2006 and it has been very difficult to find a stable job. He had a few part-time jobs but because it does not have the minimum # of hours, he can file for an EI so we are relying only in one salary. And because of that we maxed out our credit cards and have used all of my overdraft limit. Can a consumer proposal help up pay off our debt?

Posted from: Ontario

One Response to “Consumer Proposal for Unemployed”

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

Whether or not a consumer proposal will work in your situation is going to depend on two major things:

1. The consistency of your income;
2. Your monthly cash flow.

If you income is inconsistent or there is no room in your budget to be able to demonstrate how the payments in a consumer proposal are going to be made then it is very difficult to have the creditors come on board. However, if we can show consistency of income and the ability to pay, most creditors are very open to the possibility.

You also mentioned the cost of a consumer proposal, the cost of a consumer proposal is built into the offer made to the creditors, so all you have to do is be able to make the necessary monthly payment and everything else takes care of itself. My suggestion would be to contact a local trustee and discuss how a consumer proposal would unfold and whether or not it would be helpful in your situation.