March 2nd, 2011 by Questions
How the budget affect the amount proposed to creditors in CP? Can trustee instruct debtors to follow a certain budget and let say do not over eat or go out or not drink alcool to have extra money for Debtors?
Posted from: Ontario
One Response to “Budget”
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March 02, 2011 at 6:56 pm, A licensed trustee said:
Your budget doesn’t directly impact the terms of your consumer proposal. When you file a proposal, the amoutn you will have to repay is based on two things: (1) how much money would be raised (or would you have to pay) if you filed for bankruptcy, and (2) what is the minimum creditors will accept in a proposal (currently it is about 1/3 of what you owe).
The only way your budget comes into play is you have to demonstrate in your budget that you can afford to make the required proposal payment. If you can’t make the payment then you can’t file the proposal…
Which ever trustee you decide to deal with will explain this in greater detail. Good luck sorting things out.