March 20th, 2010 by Questions
WHAT IS THE AVERAGE DEBT PERCENT FOR A PERPOSAL? between 0 and full debt owing on credit cards
Posted from: Ontario
March 21, 2010 at 4:53 am, A licensed trustee said:
The minimum being accepted these days by the major financial institutions seems to be around 1/3, but each case is individually assessed.
The rules to follow are easy enought to understand. When you file a consumer proposal you need to:
(1) offer your creditors a greater benefit (more money) than they would receive if you filed for bankruptcy; and
(2) it has to be enough money to induce them to want to bother.
If a bankruptcy is worht more than your offer then there is no reason to accept your deal and if you offer anything less than a 1/3 (even if a bankruptcy provides much less) the banks won’t “waste” there time on it.
You really need to speak to a trustee so they can review your situation in detail and help you determine just what your repayment offer will have to be.
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