can’t keep up with payments considering Consumer Proposal
Both I and my wife owe around $95,000 in debt (student loans, line of credits and credit cards)!! I know that’s a lot of $$. I blame it on poor money management skills. We still have good credit rating, and we still pay our bills, but lately I have to borrow from one line of credit to pay the others or vice versa.
Obviously it is time for action, and put things back on track. but I feel I am sinking in debt more and more.
We make around $100,000/year and bring home around $5100/month.
Our monthly overhead without debt payments is around $4200 between Mortgage payments, daycare, gas, insurances, bills and grocery.
My wife’s student loan is around $30,000 and the loan is around 5 years old.
We are considering the consumer proposal. Do you think it is a good solution for this mess?
A proposal is probably the best way to go, but it would not be a consumer proposal as you have greater than $75,000 of non-mortgaged debt. Ultimately a Div I Proposal is really the same thing as a consumer proposal but:
1. If the creditors don’t accept the proposal you are automatically bankrupt;
2. The creditors must follow a more demanding time frame to get their votes in (21 days vs. 45 days); and
3. You require a greater level of support for the proposal to pass (50% in number and 66 2/3% in value of the creditors choosing to vote).