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My husband and I filed for CP end of the March for 94,000K. My trustee sends creditors a proposal for $300/month for 60 months. (if I go bankrupt I need to pay 14,000k). After 3 weeks RBC voted for $680/month which we can’t afford. RBC has the majority in our case and 45 days is over by end of this week. My trustee called them for an explanation but there is no answer yet.Can they stick to what they want? When can we request for a meeting?

Posted from: Ontario

One Response to “Sarah”

A licensed trustee said...

Unfortunately, which ever trustee you are dealing with ignored the basic rule for filing a consumer proposal. You need to offer your creditors the greater of:
1) the amount they would receive if you filed bankruptcy; and
2) enough to induce your creditors to vote “for” your offer – currently that means at least 1/3 of what you owe.

You passed the first test – $18,000 is definitely more than the $14,000 you were told a bankruptcy would cost, BUT it is significantly less than the $30,000 you needed to offer to pass the second test. By offering too little RBC is now demanding more than they might usually ask for… You may still counter offer their offer of $680 x 60, but it may be diffciult to get them to agree to the $500 x 60 your trustee should have told you offer in the first place.

To answer your question, RBC may vote however they like, for, against, counter offer. Since they are the majority of your debt you need to reach an agreeement with RBC in order for your proposal to be accepted.