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Consumer Proposal or Debt Management Plan

I was speaking with an upset lady today during a break at work. She stated that she gambled her money away. She can now only pay the minimum monthly payment on her bills but has nothing left afterward. She owns the home and only has one year of mortgage left. I suggested that before she starts receiving the phone calls from creditors, contact a trustee to see if she can obtain a consumer proposal vs. bankruptcy as her asset in her home would be considered during bankruptcy and she would probably have to sell. Was this good advice.

Posted from: Ontario

One Response to “Consumer Proposal or Debt Management Plan”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

You are on the right track, although she may want to consider re-financing the home first, or a debt management plan as in a consumer proposal she will have to pay her creditors in full and when you factor in the administration expenses associated with a consumer proposal in this scenario it may end up being a little more costly.