Credit card advances prior to consumer proposal
May 16th, 2007 by Questions
I would like to make a consumer proposal to my creditors. I left my job about six months ago to attend college. I made many cash advances from my credit cards during this time, expecting my husband to help me pay back my debt.
Now we are separating. I have started looking for a job, and I won\’t take any more advances from my cards, but I ran up a lot of debt in the past few months in living expenses. (I previously owed 30k before quitting my job 6 months ago, and now I owe 45k.)
Will this look like fraud to my trustee, my creditors and the courts? I intended to pay these debts, but now I can\’t due to the separation.
Will the separation be a satisfactory reason for making the proposal, even with the recent large advances?
Does the fact that this is a consumer proposal instead of a bankruptcy help anything? I would like to pay back at least $20k of my debt, well in excess of the recent $15k in advances.
One Response to “Credit card advances prior to consumer proposal”
Please post a follow up comment below:
(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)
You must be logged in to post a comment.
May 18, 2007 at 1:34 pm, Barton Goth GCO Bankruptcy Trustees said:
A consumer proposal is always a way to develop a more positive perception from the creditors as it is often perceived as a demonstration of good faith. You are correct that the last 15k may be a sticking poing with the creditors, but the willingness to provide a higher level of repayment that this 15k in question will go a long way.
The best thing to do now is to contact a local trustee and they will help you craft a proposal that has the greatest liklihood of success.