More surplus income than debt, so to speak

October 22nd, 2011 by Questions

My debt issue was mostly a result of fraud. While the con artist has been convicted, I’m left with a bunch of new debt. The total amount remaining isn’t the issue; it’s the payment scheduling ($2,000+/month now, decreasing to around $300/month two years from now). My total debt service ratio is over 70%, so I can’t refinance or consolidate and I’m considering a proposal. I understand that since I’ve been bankrupt before, my expected surplus income over three years will be a guide to how much to offer. This turns out to be (over) 100%. If 100% of debt would be paid off within three years, is a proposal still appropriate? Does a trustee have an option to propose a lower amount first?

Posted from: British Columbia


One Response to “More surplus income than debt, so to speak”

, A licensed trustee said:

You will not be required to repay more than 100% of what you owe in your proposal – most proposals actually have a clause that specifically stops you from making payments beyond that point (or requires any excess funds paid to be refunded to you.).

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