Vacation before filling a consumer proposal
Hello, We are in a bind. We have recently reviewed our financial situation and had no idea how out of control our credit cards have gotten. We have about $75,000 in credit card debt. We had been planning on paying these one-by-one on our own but it is too overwhelming! We each making about $100,000/year in total. So we are considering a consumer proposal in October or November.
One thing I am concerned about (and one of the reasons we are waiting to apply) is I have a trip I am taking to Vegas and California with a friend. I booked my flights early in the year and hotel before realizing how bad it was. I cannot get my money back on the flights and a couple of other costs and some are hers. I didn’t technically use the credit to pay for the costs as I budgeted the costs and then applied that money to the cards since you have to use the credit cards to book. And to make everything easier, I just booked hers at the same time. She would then pay me back the money for her share of the costs and her individual costs. Some things booked require the credit card we booked with or have travel insurance for the flights so that is one of the reasons I want to wait until after the trip to cancel them. But on the trip in October, they are going to want a card for a deposit and to have on file (she doesn’t have any) so it will probably flag somewhere I was on a vacation before filing a consumer proposal.
Is this going to hurt my husband and I being able to get a consumer proposal? Do you have any recommendations?
Filing a consumer proposal is a plan that will allow you to make a settlement or compromise of your debt. The creditors may take into consideration that you took a trip just prior to filing the consumer proposal but it does not mean that you can’t file a proposal or that the creditors won’t accept it. When you come in to meet with the Trustee to discuss your options, he/she will advise you of the options available for your unique situation and will assist you in putting together a plan (consumer proposal) that will allow you to make a settlement of your debts based on your ability to pay and that is reasonable for your creditors. Please contact the trustee listed for your area and they can help with any further questions you may have or meet with you for a free consultation to discuss your situation.