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Credit card advances prior to consumer proposal


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”

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.