RBC acceptance/other creditor acceptance impact

I`m considering doing a consumer proposal, I`m pretty sure I`d qualify. Here`s my situation. I have approximately 40K in debt-about 20K in credit cards/unsecured loan from CITI financial, 2K from Revenue Canada, and the rest (about 15K) in student loans which are over 10 years old-10K of that is with RBC. I have been able to make student loan payments monthly since graduation but nothing else–all my credit cards are in R9. I make a good income–approx 50K gross a year, but still the monthly bills don`t leave enough to pay all the debt payments. Here`s my question-first, I`ve heard that RBC is hard to accept proposals–but since they only `own` about 25% of the debt I owe, does that mean that as long as the others accept it they have to accept the terms? And also what would be a feasible % to propose? I`d like to try for 25-30% but not sure if that would be accepted. Thanks!

Posted from: New Brunswick

One Response to “RBC acceptance/other creditor acceptance impact”

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

You are correct that RBC is one of the more difficult creditors to get on board with a consumer proposal. But you are also right that you don’t need all of the creditors on board, you only need a majority of the voting creditors cooperating with the consumer proposal. Once you have that requisite majority the consumer proposal is automatically binding on all creditors.

In terms of feasible percentage it is impossible for me to say with out looking at at a variety of details specific to your situation (see factors required for a successful consumer proposal, so I would recommend you contact a local trustee and they will be able to do this for you.

As a resul