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Division 1 proposal

I am looking into filing a div 1 proposal , due to a heavy gambling addiction I have had for many years. My question is this, I have recently took out cash advances to fuel this addiction. I realize that creditors will not look favorably on this. Would these recent debts hinder a chance that the proposal would be accepted due to the fact that money was very recently borrowed? I know I can afford to repay most of the balance threw an arrangement like this, I know I will have to see a trustee to figure what I can afford, but going over my budget, I cannot see why I would not be able to afford at least 75% of the debt to repay. I am getting help with my gambling problem, and am wondering how long I should wait before I book an appointment


One Response to “Division 1 proposal”

A licensed trustee said...

Given the nature of your problem – gambling – I suggest the sooner you book your appointment the better. Your trustee will ask you for proof that you are receiving counseling for your gambling and that you have banned yourself from whatever establishments provided the outlet for your gambling (for example casinos or the track).

In regards to whether or not your creditors will accept your proposal, it will depend on just how large those recent cash advances were and the total amount of the debt you plan to repay. It may be that your trustee will structure a 2 tiered proposal – the first tier to repay 100% of the cash advances you’ve taken in the last 3 months and the second tier to repay a portion of the rest of the debt.

When you see your trustee you should probably bring with you the last three months worth of statements from your creditors so that your trustee will be fully aware of the extent of the issue.

Good luck resolving this – the most important steps are the counseling and the ban. You need to be able to prove to your creditors that you have your problem under control if you want them to seriously consider accepting your proposal.