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Consumer proposal for the debt of $80,000?

My and my wife’s debts are almost $80,000 (credit cards and lines of credit). Due to recent decrease of the working hours on my job (became part-time) and my wife is on maternity leave we have to do something about it. Our net income is about $3,500 a month. If we offer $20,000 to $25,000 to our creditors (5 in total) in the consumer proposal, do you think that creditors would accept that amount or refuse it?

Thank you

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One Response to “Consumer proposal for the debt of $80,000?”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

Assuming you do not have any non-exempt property and you have at least 3 people in the household (or soon will have) this sounds like a very reasonable offer. If all this holds true you would be offering up approximately a 17 % recovery to your creditors. While 17% may not sound like a great deal, to the creditors is often preferred to receiving far less in a bankruptcy scenario. The only thing that could really change this would be your property. I recommend contacting a licensed trustee in your area and he will be able to outline what level of exemptions you are entitled to in your area and they will then be in a much better position to predict how the creditors would react.