May 31st, 2010 by Questions
Why would creditors find it a waste of time if you offered them less than 1/3 of the balance. We have about $100k in debt and willing to pay about $22k in one lump sum. This money is coming from family. RBC has rejected this offer. If we were to file bankruptcy, they would only get about $9k. Why would they do this? Secondly, RBC wants about $30k, could we give them $22k, and pay the remainder over 5 years?
Posted from: British Columbia
One Response to “Settlement Offer”
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June 01, 2010 at 8:12 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
It is important to recognize that this vote is not necessarily representative of all the creditors, it is representative of Royal Bank. Royal Bank is traditionally one of the more difficult creditors to deal with when filing a consumer proposal, they typically require larger amounts to be offered and larger payments each month and are often unwilling to make many concessions. As for why they take this approach, this is difficult to speculate about, but it is something we have to deal with. Does it make sense for them to walk away from guaranteed money, not from where I sit, but unfortunately it is what it is. At this point all you can do is be satisfied that you have tried everything possible and if the creditors are not going to cooperate with a reasonable and fair offer you ultimately may have no other choice but to file a bankruptcy.