proposal or bankruptcy?
January 24th, 2007 by Questions
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.
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January 25, 2007 at 7:51 am, A licensed trustee said:
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).