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a couple of questions

I have approx. 55k in cc and line of c debt – is there a formulae to work out what would be an acceptable lump sum offer to creditors?
How or does it affect my Proposal if debts sent to collection agencies, before filing? – harder to get approved? do collection agents demand higher proposal amount?
will CRA take into account my pending tax refunds when looking at a proposal or are they exempt?

Posted from: Ontario

One Response to “a couple of questions”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

There is no exact formula to determine what an acceptable lump sum is to offer. But as a general rule of thumb in a consumer proposal you often would look at about a 35% repayment rate.

In terms of the consumer proposal and collections agents, it doesn’t really change things at all.

As for CRA, they will definitely consider pending tax refunds when considering whether or not a proposal is in their best interests.