Let's say your budget shows that you have some ability to repay your debts, but things still seem pretty tight. The personal proposal can help you solve this problem.
A personal proposal is an offer you make to your creditors, with the help of a trustee, in a bid to settle all or a portion of those debts: for example, you could offer them 60 cents on the dollar.
Your real ability to repay will be used to formulate the proposal for your creditors. For the creditors, your proposal must be more advantageous than a bankruptcy would be. We negotiate the terms of the proposal for you, so that you benefit from our experience in this area.
The main advantage of a proposal is that it does not affect your assets.
In terms of credit rating, a personal proposal is better than a bankruptcy.
If the total of your debts, not including the mortgage on your home, does not exceed $75,000, you can avail yourself of the personal proposal.
If the total of your debts, not including the mortgage on your home, exceeds $75,000, you must then make a Division I proposal.
The personal proposal is much more flexible than the Division I proposal, as it can be withdrawn without resulting in automatic bankruptcy should the creditors reject it.
A personal proposal may also be filed by more than one person if the debts are similar and if the total of the debts, both combined and separate, do not exceed $75,000, not including the mortgage owing on the principal residence.
In the majority of cases, your creditors will absorb the fees and costs of the trustee or administrator of the proposal.
Ask for details from the trustee or representative of our firm before deciding on a course of action.
