My spouse and I are considering a filing a consumer proposal. We are in our late 50’s. We will never have enough time to pay off our unsecured debts. I expect, because of our combined income that we will need to pay nearly if not 100% of what we owe to make the proposal more attractive than a bankruptcy. Is it common to offer 100% of the debt to the creditors in a consumer proposal? We think the protection under a consumer proposal is better than trying a debt settlement.

Posted from: Ontario

One Response to “shortstop”

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

I agree with you that a consumer proposal is a more secure way to go about things than a debt settlement. There simply are too many risks with debt settlement and to many companies that offer these whose advice seems to be questionable. As for how often, they happen more frequently than most people realize as the protection afforded through the proposal and the elimination of the effect of compounding interest make a significant difference in what the total repayment period is.