Proposal Default
I have been paying into my proposal for 2 years and have been notified by my trustee that the amout of direct withdrawl is incorrect. Instead of the $285 they have been taking it should be $450. She now informs me that we are in default and unless we come up with the difference before we go to court the proposal could resort back to my creditors. I sgned an agreement that stated $450 should come out but the orginal Direct withdrawl document was never changed. I do not have $5000. Is the total responsibility on my shoulders or does the trustee own a share?
Posted from: Ontario
Ultimately, the responsibility to make the correct payments was yours – that’s not to say your trustee didn’t screw up, but it was your proposal and you should have noticed that the payments were lower than they were supposed to be.
If your trustee is telling you that you have to bring it current right away they’re being a bit “bullheaded”. I suggest you go to Court, explain what happened and then ask the Court for permission to file a second proposal for the same debts as the first one. This is often called a completion proposal -by filing a second proposal you can have up to 60 months to make the payments, as opposed to having to make even larger payments than the $450 you originally agreed to in the time that you had left.
As an added bonus, if you get a Court Order allowing you to file a second proposal you don’t have to stick with the trustee that you’ve been dealing with – take your Court Order and find a new trustee…