consumer proposal concerns
December 31st, 2009 by Questions
I am filing for a consumer proposal this week. part of my debts is my house that i gave back to the bank, and the bank haven`t sold the house yet. I am just wondering if this is gonna be a problem for my proposal being accepted since the house is not sold yet? The creditors are getting way more money in my proposal then they would get if i file for bankruptcy, i am offering them 30% back. How long does it take untill i get an answer back? does it really take 45 days
Posted from: Ontario
One Response to “consumer proposal concerns”
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January 02, 2010 at 10:02 pm, A licensed trustee said:
We generally advise our clients that plan on including a house in a proposal filing to make sure they have (at least) moved out of the house (whihc often means surrendering the house to your mortgage company). By doing this there is no question of whether or not the shortfall on the sale (ie the debt) may be included in the proposal.
Ask yourself a simple question – when the house sells will it cover to costs of selling? Will there be any money left for you after the sale? If the answer is no, then surrender the house to the mortgage company, move out and then file. If you are certain there will be some money left at the end of the day, then it’s ok to stay (but you’d better not be wrong…).
It sounds like you’re alreading dealing with a trustee – go and review your house options again BEFORE you file.
In regards to the time frame, the creditors have 45 days by law to vote – unless they vote early it will take the full 45 days before your trustee can confirm that your creditors have accepted your proposal.