Lump Payment
I used a couple of my credit cards to start up my own business but things didn’t exactly work out and I am not in debt by about 50K.
The trustee that I contact has suggested that the simplest thing is just declaring bankruptcy since I have no assests.
They suggested the other possibility would be a consumer proposal where I could offer a 1-type lump sum payment, if I could get my family to give me the money.
The trustee couldn’t tell me how much the CC companies would be likeley to accept as a 1-time lump sum payment. So I am wondering if there is a “standard” or “typical” amount?
I could probably get in the area of 10K from my family if it would mean avoiding bankruptcy, but I wonder if the CC companies would accept that on a 50K debt?
There really isn’t any “standard” or “typical” amount as this is dependent on a number of factors (i.e. who you owe money to, the relationship you have with your creditors, how much you are worth in a bankruptcy…). The only advice I have is that if you are set on avoiding a bankruptcy, have an initial amount put up in the proposal initially (say $1,500) and make the balance to be paid by a 3rd party only if the proposal is accepted by the creditors and approved by the court. That way you don’t have as much at risk and there is a clear incentive for creditor cooperation.