Lump sum payout
I owe about 80K in unsecured debt to RBC and most to CIBC. Have about 15K in RESP for children. Lost my high paying job and now receiving EI. Struggling to make ends meet. Don`t want to go into bankruptcy as it may affect my future in the banking and insurance industry. Is it possible to file a consumer proposal for say 25 cents on the dollar to be paid out as a lump sum and not over 3-5 years. Only real asset is the RESP at 15K and we are a family of 4 and not expecting to go over threshold to well over 9 months from now. Will the companies take that considering they will get way less in bankruptcy?
Posted from: British Columbia
Lumpsum payments work quite well for proposals, but you need to keep in mind that whatever terms you offer in a proposal, they need to at the very least meet and/or exceed what your creditors will be paid if you file for bankruptcy.
This usually means that you need a third party source for the lumpsum – if you are simply offering your creditors a lumpsum from an asset that they’d receive in bankruptcy, it may not be enough to get the creditors to agree.
This can be confusing – I suggest you use the links to find a trustee in your area and give them a call to discuss your options.