settlement percent

March 20th, 2010 by Questions

between 0 and full debt owing on credit cards

Posted from: Ontario


One Response to “settlement percent”

, 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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