How to calculate Consumer Proposal amount?

486 viewsConsumer Proposals

How to calculate Consumer Proposal amount?How to calculate Consumer Proposal amount?

I owe a Canadian bank $21,000 (Visa and Line of Credit), have no other debts, and have to choose between filing bankruptcy or a consumer proposal.

Would you have a ballpark idea of what percentage of this amount a bank might accept at the moment if I were to try to file a proposal?

Would there be additional fees charged by the trustee, or does their payment come out of the proposal amount?

Also, if you don’t mind, Is having filed a consumer proposal considered having been “insolvent” in Canada?


Facebook Comments
Changed status to publish

The consumer proposal payments must be more than your creditors would receive if you have gone bankrupt.

In most cases, a consumer proposal means you will repay about 30% of the debt that you owe.

However, every proposal is different and you will have to see a trustee and get a confidential evaluation to provide the trustee with all the information you can.

The trustee can then advise you how to proceed once he has a full understanding of your financial situation.

The trustee fees come out of the payments you make on the consumer proposal.

The credit bureau uses the code R7 to denote a person under a consumer proposal and R9 for a person in bankruptcy.

– Earl Sands, Licensed Insolvency Trustee

Facebook Comments
Answered question
You are viewing 1 out of 1 answers, click here to view all answers.
Facebook Comments