Do I Have To Pay a Minimum Portion?Posted on: August 4, 2017
In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Toronto talks about, Do I Have To Pay a Minimum Portion?.
Some people are under the impression that they go bankrupt or for that matter they do a consumer proposal, they are required to pay a certain percentage of what they owe, what their overall debts are. That’s not quite the way it works. In a bankruptcy, it’s not that at all. In a bankruptcy, there is a mechanism that will determine whether or not if you have to make any payments for your creditors into the bankruptcy. It’s based on what you earn, what your monthly salary is. There’s a formula for all that, and a Trustee explains that to you and a Trustee does the calculation and all that. In a proposal, it can be a little bit of a factor trying to determine how much you are going to offer the creditors and all that. But, there is no fixed idea that you have to pay 20% or 10% or 50% of whatever you owe. In a proposal, you offer the best you can, and you try to work out a deal with the creditors that they are willing to accept of what you are going to pay. In a bankruptcy, this formula is applied, if you earn enough money you will pay that money into the bankruptcy in order to obtain your discharge. It doesn’t matter what percentage it is.
If you are uneasy about bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about your bankruptcy problems.
Contact Richard Killen
FREE No Commitment Consultation
Contact us now for a fresh start!
“Serving Toronto & the GTA for over 25 years.”
Recent Blog Posts
- Do Not Cash IN RRSP's To Pay Taxes Owed In Ontario
- Do You Owe Taxes Based ON CERB Benefits?
- File Your Return by April 30, Even If You Cannot Afford To Pay Taxes Owed
- Facebook Live Webinar: "Getting debt help: Where to go when you face financial difficulties"
- Ambitious Adulting: How to Reach Financial Security in Your 20s