December 15th, 2009 by Questions
We are about $90,000 in debts.
Three year ago I transferred our property to my daughter as she paid all our debts at the time (over 80,000) and also paid the remaing mortgage aprox 26,000, the market value of the house at that time being $129,000.
My husbund being retired and disable, and me loosing my job we couldn`t pay mortgage, property taxes and utilities.
For the next three years until I also qualified for old age secutity and guaranteed income suplement we used our credit cards and line of credit for living expenses. Also we made almost in time our monthly due payments we also used a card to pay another one and so on.
Since June 2009 we paid 1,700 a month through credit counseling but the amount is way too high for us and we used a line of credit for this.
My question is: do we qualify for CP or bancruptsy if our combined monthly income is 2,520 ( CPP, OAS and GIS) ?
Posted from: Ontario
One Response to “Cp”
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December 16, 2009 at 11:08 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
It is not the amount of income you have coming in that is important when determining if you can file a consumer proposal, it is your cash flow. You have to have sufficient cash flow each month to be able to make a resonable offer to your creditors. This offer must provide more to the creditors than they would receive if a bankruptcy were to be filed.
So what you are best to do is to contact a local trustee and they will help you to determine a) what would be required for the creditors to come on board and b) whether or not that will fit into your monthly budget.
When you meet with the trustee it would be a good idea to bring details of this house transfer that occurred. As depending on how this was done it may have an impact on how a bankruptcy or even a consumer proposal would unfold.