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paid 2 creditor’s off before deciding to do a proposal

My husband a I paid off two of our creditor’s off, and then 2 week’s later decided we couldn’t handle the debt load anymore, we have a app in a week with a trustee, is this going to be a problem ?

Posted from: Ontario

One Response to “paid 2 creditor’s off before deciding to do a proposal”

A licensed trustee said...

Maybe (probably) – it will depend on the size of the debts and your relationship with the creditors. What you;ve doen is called a “preference”, you have treated these two creditors better than your other creditors. If the debts were small in comparison to your other debts no one will care. If they were large, or if they were to relatives, or if you used other credit to obtain the funds to pay these two creditors off, there may be problems…

Discuss this with your trustee as soon as you meet with them – once they have all of the facts, they can tell you wnat needs to be done about it.