March 16th, 2012 by Questions

The Trustee I spoke with said the Consumer proposal would be 80% of my cash assets however I see many instances of around 30%. What is the average cash settlement for proposals to creditors that is accepted.

Posted from: Prince Edward Island


One Response to “Repayment”

, A licensed trustee said:

I suspect you’ve missed a very basic fact about proposals.

You need to offer your creditors the greater of:

1) what they will receive if you file for bankruptcy; and

2) a large enough offer to entice your creditors to accept your offer. Currently that means at least 1/3 of your debt.

So, you can’t offer your creditors 30% if they’d get 80% in a bankruptcy. I suggest you go back and review all of this again with your trustee BEFORE you file.

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