August 25th, 2012 by Questions
Hi, I have about $45,000 Credit Card Debt and I’m thinking to file for a Consumer Proposal. My question is: how is the amount of the monthly payment to the unsecured creditors calculated?? I understand the amount is dependent on my monthly income (average of the past 3-6 months) and my expenses. Is there a formula to calculate that?
For example, how much could be the difference if my income is $3,000 a month or $1,500 a month?
Second Question: Should I apply for a car lease now that my credit is still ok?
Many thanks and best regards
Posted from: Quebec
One Response to “Monthly Payment”
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August 25, 2012 at 7:08 am, A licensed trustee said:
If you file a consumer proposal you need to offer your creditors the greater of:
(1) what they would receive if you filed for bankruptcy; and
(2) an amoutn large enogh to induce your creditors to accept the deal (currently that means about 1/3 of your debt).
The higher your income the more it may cost to file for bankruptcy and therefore the more you may have to offer if you file a consumer proposal.
Take the next step and contact a trustee in your area – they can estimate how much a bankruptcy might cost you and then you can easily determine how much to offer if you file a consumer proposal.