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Second Proposal?

How likely are creditors to accept a second proposal? My ex-wife and I had a proposal a few years ago, but as the payments were too high (mixed with some immaturity on our part), we ended up missing a third payment within about a 18 months. We’re divorced now, and the creditors are starting to come back after me. I really want to pay these folks off, and have no desire to declare bankruptcy if at all possible. I do pay child support, and have actually paid off a couple of the creditors on the original report. I do believe I have the means to pay these folks off, given enough time (ie. the five years). Are they likely to accept a second propsal just from me, especially if the amount I end up paying them back is more than they’ll get from a bankruptcy (I have very little in the way of assets, and my car is near the exemption limit). Thanks.

One Response to “Second Proposal?”

Barton Goth GCO Bankruptcy Trustees said...

A second proposal is always possible, and I have seen some instances where they have been accepted. Although you frequently find the creditors require a higher level of recovery than initially accepted.

As well, you cannot file a second consumer proposal if your first proposal was annulled or deemed to be annulled (which it sounds like is the case). You are eligible to file a Division I Proposal and this can be used to accomplish the same purpose but is a bit more involved process that you are best to discuss with a local trustee.