Bankruptcy Kitchener Blog by Scott Schaefer » Consumer Proposal

By: Bankruptcy Kitchener  09-12-2011
Keywords: Credit Cards, Child Support, Consumer Proposal

Scott Schaefer CA CIRP Trustee

- They were married five years ago,

- They have two children together,

- They purchased their house in Waterloo three years ago,

- Joe works in construction so experiences some seasonal swing in his income,

- Jane works for one of the large insurance companies and has steady income,

- Joe was married once before and pays child support for one child,

- They now have day care costs of $800/month,

- Over the years, Joe and Jane have accumulated debt of $60,000 including lines of credits, credit cards and overdrafts.

The that Joe and Jane offered today is a legal settlement. It encompasses all of their unsecured debts but not their mortgage or car lease. After Joe and Jane signed the documents, I e-filed them with the government and they were immediately provided with their estate number – proof that they were legally protected by the . Only a is permitted to file a consumer proposal which is why Joe and Jane met with me in my Kitchener bankruptcy office. A is not a bankruptcy but provides the same legal protection. Creditors cannot continue or start any collection actions after a has been filed.

Posted on September 13th 2011

The information in this article was current at 06 Dec 2011

Keywords: Child Support, Consumer Proposal, Credit Cards

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