Projected Income for Proposal?

March 17th, 2008 by Questions

I would like to make a consumer proposal for all my debts. I understand my creditors will need to see a source of income.

I am currently unemployed, but hope to have a job soon. Would a trustee consider submitting a proposal based on what my income has averaged over the past few years before my unemployment?

Would it help if my wife made a regular income? (She offered to help make payments if I didn`t have enough to pay my proposal installment in a particular month. The debt is all in my name.)



One Response to “Projected Income for Proposal?”

, A licensed trustee said:

When you file a consumer proprosal you are required to provide your trustee with a statement of income and expense that demonstrates your ability to make the proposed payments. The statement should be based on your recent (historical) income adjusted for any likely changes in the future.

That’s the technical answer – the practical answer is unless your current income on EI plus your wife’s income can support your proposal payments it is unlikely a trustee will allow you to file a proposal.

It is to your credit that you want to repay a portion of your debt by filing a proposal. but unless you have the income to support the payments it is likely to fail. If it fails you’re back where you started less whatever payments you were able to make.

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