please i need an answer

November 29th, 2009 by Questions

I am going to file for a consumer proposal in the next couple of weeks, and if they don`t accept it i will file for bankruptcy.
I just moved in with some friends, they are letting me live in their basement for free, when i file for consumer proposal or bankruptcy, do i have to declare how much i pay for rent, since i am not paying rent. and are they going to question how i spend my money and my expenses as long as i am fullfilling my duties?

Posted from: Ontario


One Response to “please i need an answer”

, A licensed trustee said:

Part of the process of filing a consumer proposal (or bankruptcy) involves disclosing your current financial situation – that includes setting out your current income and living expenses. If you are not paying any rent then you won’t list any rent expense on the form.

The reason for this is pretty straight forward – you are asking your creditors to accept less than the full amount that you owe them based on financial hardship. How can your creditors determine if what you are offering is fair and reasonable if they don’t know how much money you earn and how much it costs you to live every month.

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