Consumer Proposal vs. Bankruptcy

Posted on Wednesday, June 4, 2008

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Hello,

I owe $65,000 in credit card debt, $15,000 in student loan debt. I have very few assets, I make $2424 net per month and my living expenses come to approximately $1,700 per month, not including my debt servicing costs. Since I have $a decent amount of surplus, would a trustee prefer I do a proposal? I think I would prefer to do bankruptcy, so that when the other debts are dealt with I can quickly pay back the student loans. My concern is that I have heard that a trustee can oppose a bankruptcy if they believe that a proposal should have been filed. Is this the case?

Filed under: Consumer Proposals and Bankruptcy
 posted by Questions @ 7:59 am
1 Expert Comment:

 At June 11, 2008 | 10:32 pm , Barton Goth GCO Bankruptcy Trustees Said...

This is really up to the trustee. I am a trustee who believes that whenever possible you should try to avoid bankruptcy and a bankruptcy should be used as on as a last resort. However, this doesn’t mean that you are not permitted to disagree. The key thing is you need to find a solution your comfortable with, so I would simply contact a trustee and discuss that directly with them. Either way, the decision is yours, not your trustee’s.

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