Fresh Start

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

One Response to “Fresh Start”

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.