Wondering about Minumum payments leading up to Proposal?

November 15th, 2011 by Questions

My husband and I have finally made the definite decision to file for a consumer proposal. We have about 80,000 in consumer debt mostly due to financial mis-management. We do not qualify for a consolidation loan but do have the income to pay 50%-75% or possibly more of our debt through proposal. We are planning to see a trustee in late January. We are beginning to fall behind in our minumum payments and I am wondering if we are definite in our decision to file if we should continue to make minimum payments until we see a trustee in January or stop now.

Posted from: New Brunswick

Questions

One Response to “Wondering about Minumum payments leading up to Proposal?”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Once you are definite in your decision and are committed to filing a consumer proposal there is no point paying the minimum’s on your accounts. However, if you are not going to see a trustee until late January then your creditors may have time to start to garnish wages or cause some other problems for you between now and then. That would be a relatively quick time frame to go to court and to implement the garnishee, but it is possible. The other part of this is that I see very little reason to wait until late January, I would recommend going to see a local trustee sooner rather than later. This means starting the proposal sooner, it also means finishing the proposal sooner.

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