Need Info

Just wondering with a consumer proposal say if out of 29,000 worth of debt you pay 24,400 back with monthly payments of 300.00 and estimated 2000.00 in expected income tax for a lump some of 10,000 over the 4 year period. Lets say the person’s income tax was more the the 2000.00 and the lump sum of 10,000 is already payed and at first you were approved to pay 60% back and now the trustee is telling you that you now have to pay back 100%. And that you can not pay off the CP early you have to go the full 4 years

Posted from: Prince Edward Island

One Response to “Need Info”

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

This is a very difficult question to ask without being more familiar with your financial circumstances. The reason for this is that a consumer proposal can be for a wide variety of situations. It may be to simply reduce the principle of the debt to a reasonable amount, or the primary purpose may not be a reduction of the principle but simply adjusting the payment schedule to something other than the creditors provide under the original contracts. In other cases it is the interest that is the issue and the only reason behind the proposal is to stop that interest from accruing. So as you can see different proposals are done for different reasons, so this consumer proposal may make sense but it depends on the context that it is being offered.