Inconsistent Income & Consumer Proposal

My husband and I both work and I have a consistent pay whereas my husband has a steady income but earns by piecework so some pay periods are high and some are not. We are looking into consumer proposal, but I’m finding that as I look at our monthly expenses, sometimes we may be able to have enough to meet and exceed all of our expenses whereas sometimes we may fall short. What do you think are the chances of being approved for consumper proposal?

Posted from: British Columbia

One Response to “Inconsistent Income & Consumer Proposal”

Gareth Slocombe, Trustee | C.I.R.P | C.A said...

A consumer proposal needs to be viable on two levels. It should obviously be acceptable to creditors who vote on its acceptance. However, it also needs to be designed so that you can manage it over the full term of the proposal. If your income and expenses are not the same each month, which is common for many, it will be important to prepare a monthly budget that looks at your expected full year income and expenses and arrives at a reasonable monthly average prior to make any commitment under a proposal to your creditors. You will need to plan to save some cash from higher income months to cover those months with lower income or unusual/non-monthly type expenses. Your trustee should be able to assist you in this regard