November 16th, 2011 by Questions
I am going to fill consumer proposal what if in case they reject my proposal and they ask for more is there any way i can start paying from low monthly payment and increase it every year. for example my debt is 50k and monthly payments are 240 as of proposal banks ask for 350 monthly. Is it possible that i start from 240 than next year i pay 350?
Posted from: Ontario
One Response to “CP 23”
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November 16, 2011 at 6:52 pm, A licensed trustee said:
Yes, it is possible to structure a proposal so that your payments increase over time (the reverse is also true – you may structure a deal where your payments decrease over time). It all comes down to how much youre creditors may be entitled to if you filed for bankruptcy. When you file a consumer proposal you need to offer your creditors the greater of:
(1) what they would receive if you filed for bankruptcy; and
(2) enough to enituce them to agree (currently about 1/3 of what you owe)
If you are offering the larger of (1) and (2) then that actual payment terms will be negotiable.