Surlus payment too high

March 24th, 2010 by Questions

I`m considering doing a CP, I make approx $72 500 per year, no kids, separated, which resulted in the foreclosure of our home at a net loss of $47 000 (I believe the ex was claiming bankruptcy), plus I have other bills for a grand total of approx $95 000 of debt. If I do a CP what if I don`t like how much and how long my creditors want me to pay? Second, do I keep my credit cards for emergencies (if they are with a bank that wasn`t effected by the CP)? Thank you

Posted from: Ontario


One Response to “Surlus payment too high”

, A licensed trustee said:

I am not sure you have fully understand the concept behind a proposal – it is a negotiated settlement plan to repay a portion of what you owe. You make an offer (the proposal) to your creditors and they either vote for it, against it, or ask you to change it. If at the end of the day you can’t agree on terms with your creditors then the proposal will not be accepted. If it is not accepted you may file bankruptcy, or if you can afford to repay the debts in full, perhaps credit counseling will make sense for you. No one is going to force you to accept your creditors’ terms – that is a decision you have to make yourself, but if you can’t agree then your proposal won’t proceed.

In regards to your credit cards, they must all be surrendered to your trustee if/when you file a proposal – even cards with no balance on them. You can’t keep one “just for emergencies”. You need to set aside (save) some money for that.

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