Are creditors motivated to accept a proposal?
Student loans hold 70% of my debt. I want to file a proposal.
If they don’t accept the proposal, this will force me into bankruptcy because they have a wage garnishment order and with the garnishment, I can’t service my other debts.
That said, I can’t claim bankruptcy on the loans due to the 7-year rule, and a return to school part-time two years ago.
How do I make the proposal attractive enough so that they will agree to it, (although it’s unlikely they will agree to release the debt at the end of the proposal)?
If I don’t then it looks like I have to go bankrupt only to be discharged in 21 months to face higher interest and a wage garnishment.
Student loans are unlikely to accept a proposal unless it is very generous. Making a proposal can make your other debt payments lower which will free money up to pay on your student loans.
I suggest you speak with a trustee to learn all of your options. A trustee will be able to explain your best course of action during a risk-free and confidential debt evaluation.