October 29th, 2011 by Questions

Just a quick question re budget.
Can creditors tell you to modify your budget and offer more if you want to file for proposal.

Like drink less beer, eat less – do not buy clothes fron certain stores etc

Do they want proofs how budget is calculated?

Thanks for your help

Posted from: Ontario


One Response to “budget”

, A licensed trustee said:

Your creditors don’t have the right to tell you how to spend your money – no one does, BUT they have the right to look at how you are spending it in order for them to decide how much they think you can afford to pay.

So, if in your budget you have listed $500 for red licourice every month and a payment towards your proposal of only $250 they might decide to ask you to pay more towards the proposal -if you can afford to buy that much licourice then you can afford to pay them more.

Keep in mind that your creditors see hundreds, perhaps thousands of proposals each month – they have a very good idea of what it costs families of different sizes to live. If your budget is reasonable you shouldn’t have any problems.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)