proposal or bankruptcy?
For unsecured debt at 115,000, 5 major creditors, no missed payments, plus ccra owing 15,000 , struggle with gambling for one year, what is the “maximum” time one could be kept in bankruptcy for? (I have calculated that surplus payment will likely be 1000 per month – for how long?)
Or should I make a proposal, including ccra debts, rrsp 20,000 and proposal of 60,000 over 60 months, what is the likelihood of proposal being accepted? Could it be less?Who are the toughest creditors to deal with? Thank you.
It is very common for a spouse to declare bankruptcy or do a proposal without it affecting the other spouse. However, you must be very careful when examining all of the facts that (a) all of the debts are listed in individual not joint names, and (b) none of the assets within the house have been pledged as security on any of the loans that will be contained within the bankruptcy or proposal.
I recommend consulting with a trustee in your local area. Make sure you are confident whose names the debts are listed under, if there is any doubt I recommend bringing in the original documents you signed when entering into the various loan contracts for the trustee to review.
There are some regional variations in how some of the surplus income rules are applied, but if your payment was $1000 a month you should expect your bankruptcy to run 21 months. That is the maximum time a trustee may impose without going to Court. (If you end up in Court for some reason, the Registrar (like a judge) may set whatever terms they like).
Based solely on what you’ve told me, your proposal sounds like a much better deal for your creditors. I can’t tell you whether or not it will be accepted – there are too many variables.
What you should do is use the links at the side of the page to find a trustee in yor area and give them a call. They should be able to give you a general idea of which creditors are problematic and whether or not the amount you have suggested is enough (or maybe too much).