How much did you owe in your consumer proposal?

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catharsis

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How much did you owe in your consumer proposal?
« on: August 09, 2018, 04:10:32 AM »
Hello all, I'm new to the CP world as I just filed today.

I am wondering what the total amount of unsecured debt you had, who it was with, and what you eventually had to pay under the proposal.  I am hoping someone with a similar situation as me can reply, but I am interested in all/any replies.

Basically this is what I owe:

  • $35,000 to RBC (credit card)
    $5,000 to RBC (another credit card)
    $10,000 to RBC (line of credit)
    $10,000 to Simplii Financial (line of credit)
    $8,500 to PC Financial (credit card)

The approximate total is $70,000.  Ugh, that's a lot.  I finally said 'no' to paying hundreds and hundreds of dollars a month in interest alone.  I actually calculated that since 2014 I've paid these banks $25,000 in interest alone.

My trustee thinks that we can get away with $500/month for 5 years as an offer.  She says RBC has all the power in the vote, and that they will likely either accept it right away or counteroffer a higher amount. 

How about you?  Anyone else with evil RBC and they just accepted it?  Anyone else in the 70k range?  Curious.

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Jennykk

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Re: How much did you owe in your consumer proposal?
« Reply #1 on: August 09, 2018, 11:57:40 PM »
I owed $46K. Half of it was with Scotiabank.
My proposal was approved for $14,500 or $250 per month for 5 years. I filed two years ago. My plan is to pay it off by end of the year. I have $5K to go.
It was a lot of work to get to this point. Discipline with spending and sticking with the budget are important.

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LT

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Re: How much did you owe in your consumer proposal?
« Reply #2 on: August 10, 2018, 01:44:09 AM »
Every situation is different. There are many factors that go into your proposal, like how much is your current income, what are your current assets, etc.  Also, RBC can be a tough nut to crack.  That said, $500/month for 60 months is about 43%, which seems high. You can always make a lowball offer, what's the worst that can happen?  They make a counter you offer?

I owed close to $250K and I am paying just under $1K/month.  I think it worked out to be about 24%.  I told the trustee that I would soon be losing my job (which was true) and since I had no assets, the creditors would get nothing if they forced me into bankruptcy.  My CP was accepted, with no counter offers.

I guess I am saying is that you have more power than you think.  The banks have already written off your debt, they are now just trying to get back as much as possible.

Good luck.

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Wetcoaster

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Re: How much did you owe in your consumer proposal?
« Reply #3 on: August 10, 2018, 06:56:09 PM »
Like LT says 43% seems a bit high for a CP.  Keep in mind the Trustee isn't really working to get you the best deal.

We owed $160,000 and our CP was $860 a month for 60 months with a 25% discount for early payout.  we were lucky in that I won $25,000 on the lottery
and cashed in some RRSP's and paid it off in a year.  Any extra money you get try and put it toward the CP and pay it off a fast as you can as it is sticken from your record after 3 years of paying it off .  So we have 19 more months before its off now.




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Wetcoaster

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Re: How much did you owe in your consumer proposal?
« Reply #4 on: August 10, 2018, 06:56:56 PM »
I owed $46K. Half of it was with Scotiabank.
My proposal was approved for $14,500 or $250 per month for 5 years. I filed two years ago. My plan is to pay it off by end of the year. I have $5K to go.
It was a lot of work to get to this point. Discipline with spending and sticking with the budget are important.

That's great you are doing so well!

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Lost and Found

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Re: How much did you owe in your consumer proposal?
« Reply #5 on: August 11, 2018, 01:46:46 PM »
Mine was about $137 K, most of it  CRA.  Paid it off at $300 a month.

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Jennykk

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Re: How much did you owe in your consumer proposal?
« Reply #6 on: August 12, 2018, 01:13:49 PM »
I owed $46K. Half of it was with Scotiabank.
My proposal was approved for $14,500 or $250 per month for 5 years. I filed two years ago. My plan is to pay it off by end of the year. I have $5K to go.
It was a lot of work to get to this point. Discipline with spending and sticking with the budget are important.

That's great you are doing so well!

thanks!  :)

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Lost and Found

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Re: How much did you owe in your consumer proposal?
« Reply #7 on: August 13, 2018, 11:04:19 PM »
LT, I understand that if that was over $250 you would not have been able to get a CP. Is that correct?

Also, wondering, at $1000 per month and at serious risk of losing your job, why did they accept your proposal as from my understanding, for a CP to be accepted there must a means of paying it off with no waffle room for missed or skiped payments.  Unless they also find that getting some money and then raking you over the coals until you bo bankrupt is a trick they hope to use.

Well done anyhow! 



Every situation is different. There are many factors that go into your proposal, like how much is your current income, what are your current assets, etc.  Also, RBC can be a tough nut to crack.  That said, $500/month for 60 months is about 43%, which seems high. You can always make a lowball offer, what's the worst that can happen?  They make a counter you offer?

I owed close to $250K and I am paying just under $1K/month.  I think it worked out to be about 24%.  I told the trustee that I would soon be losing my job (which was true) and since I had no assets, the creditors would get nothing if they forced me into bankruptcy.  My CP was accepted, with no counter offers.

I guess I am saying is that you have more power than you think.  The banks have already written off your debt, they are now just trying to get back as much as possible.

Good luck.

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Wetcoaster

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Re: How much did you owe in your consumer proposal?
« Reply #8 on: August 14, 2018, 02:12:37 AM »
Keep in mind that your CP payments are based on your income and ability’ to pay.  Our Cp payments were high because our income was over $100,000 a year

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LT

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Re: How much did you owe in your consumer proposal?
« Reply #9 on: August 14, 2018, 02:50:30 PM »
I was just under the $250K maximum for a CP.  I think the creditors accepted my proposal because the knew they would get $0 if they forced me into bankruptcy. I had zero assets. I filed in August and lost my job at the end of September.  I was making a fairly good salary, about $15K per month (so I had about $45K in my war chest).  The thing that was different for me was that I am incorporated (I am a contractor).  That $15k/month is paid to my corporation and then the corporation pays me.  That meant the creditors could not get at any of that money.  I could pay myself just under the bankruptcy limits. I am sure they could probably have taken me to court, but that would cost them even more. The thing about a CP is if you fail paying the CP in its entirety, they get to keep all the money and you still owe the original amount (I think).  So I guess it came down to get some money or get zero.  They chose to accept my CP.

 

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