size of debt
October 22nd, 2012 by Questions
the figure i see the most is paying 1/3 of your debt through a consumer proposal.
does this 1/3 stay the same no matter the size of debt? what if its smaller like 10k in debt.
would i still be paying 1/3?
also, i read that the offer must be good enough for creditors to accept, my question is, what choice do they have?
if i say take 2k of 10 grand or i go bankrupt.. why would they say no and get nothing?
Posted from: Ontario
One Response to “size of debt”
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October 22, 2012 at 10:05 pm, A licensed trustee said:
I’ll answer your second question first – “what choice to they have?” Well, if you are not offer them enough of a repayment to “make it worht their while” they’ll simply vote no. It may not make sense to an individualk, but there are cases (at least in the banks’ eyes) that nothing may be better than something.
To adrees your first question, 1/3 of $10,000 likely won’t work. The minimum proposal most firms will allow you ti file is at least $6,000. The reasoning goes something like this – at $6,000 only $3,000 goes to your creditors, the other $3,000 is consumed by government and professional fees.