missed payments, before trying to get a CP

September 20th, 2009 by Questions

my husband and i are about to file for a consumer proposal. Our credit cards debt is between 30-40 thousand dollars. we have missed two mortgage payments, and numerous credit card payments because we fell way behind. How to we go about filing for a consumer proposal when we have missed payments on credit cards and car payments, and house paymnets (roughly 3 months worth). how do we attempt to catch up on our missed bills? This seems like a stupid question but i have no idea what were going to do. we do make enough between the both of us to cover our bills, we just hit a rough patch, and fell behind.

Posted from: Ontario


One Response to “missed payments, before trying to get a CP”

, A licensed trustee said:

If you have made the decision to file a consumer proposal then there’s not much point in making any of your unsecured debt payments. Use the money to bring your secured debts current. That means stop making credit card payments and use the money to catch up on the mortgage and car (assuing you want to keep the car).

It won’t make a difference whether or not your unsecured debt payments are current once you file the proposal so don’t worry about them.

If you aren’t sure you are going to file the proposal (or bankruptcy) then keep making your payments as best you can. Once you stop paying it becomes very difficult to ever catch-up (as you are no doubt finding out).

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