October 29th, 2012 by Questions

We started bankruptcy procedures and discovered with our steady income now we’d be better off doing a proposal. But our trustee said they would calculate the whole amount to pay not partial I ask you Why? Also the trustee’s fee is 20% is that right? Or reasonable?

Posted from: Alberta


One Response to “Proposal”

, A licensed trustee said:

When you file a proposal you need to offer your creditors the greater of: (1) the amount they would receive if you filed for bankruptcy, and (2) an amoutn large enough to entice your creditors to accept your offer – currently than means about 1/3 of what you owe.

If you have already filed for bankruptcy then you should have a pretty good idea how much it will cost if you complete the procedure. If you want to file a proposal now to cancel the bankurptcy you may, but you have to offer your creditors more than they’d receive in the bankruptcy.

YOu are NOT required to use the same trustee that you filed bankruptcy with to file your proposal. Why don’t you call another firm, lay out your situation and ask them how much you’d have to offer in a proposal. Then you can decide whether or not to make the switch.

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