March 27th, 2012 by Questions
I have credit card debt of 60000 and am looking into a consumer proposal. I own my own house and there is about 5-10 thousand equity in it. I racked up my credit due to legals costs during a separation. Is there any chance that they would take anywhere from 15000-20000.
Posted from: Ontario
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March 27, 2012 at 7:14 am, A licensed trustee said:
When you file a consumer proposal you need to offer your creditors the greater of two things:
1) the amount they would receive if you file for bankruptcy; and
2) enough for your creditors to accept the offer – currently that means about 1/3 of what you owe
I cannot tell you how much #1 will be, but at the very least it will include the equity in your home.
#2 will be $20,000 (1/3 of $60,000).
You should contact a trustee in your area to get a more accurate assessment of what you’ll need to repay, but it’s likely $20,000.