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Will creditors accept a cp?

I owe about $28,000 in credit card debt and money I owe the CRA. My income is about $600/month (welfare). I know most posts on here say that creditors will accept a minimum of 1/3 of the debt owed, but I don’t have the money to pay any of the debt back. I don’t want to go bankrupt, but am tired of collections calls. My mom has offered to pay $6,500 for me if they’ll accept a cp. Do you think my creditors would accept this, even though it’s only about 23% of what I owe? At least then they’d get some of what I owe them which they wouldn’t receive anything if I have to go bankrupt.

Posted from: British Columbia

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One Response to “Will creditors accept a cp?”

A licensed trustee said...

They might, but why would you let your mother pay $6,500 to deal with your debts? Wouldn’t you be better off to file bankruptcy and use the funds to improve the quality of your own life. Or better still, let your mother use it to improve the quality of her life?
You are what we call in the industry “creditor proof” – with exception of the collection calls, there is very little your creditors can do to you – they cannot seize and/or garnishee social assistance. As long as you remain on assistance you can simply ignore your creditors and hope they go away. This is not a great strategy to deal with yoru debts, but in my opinion, it makes more sense than borrowing money from your mother to deal with the problem… Sorry, but you asked.