I received an email yesterday from someone who wanted to file a consumer proposal, but he wasn’t sure how much he should offer. I have extensive experience with consumer proposals (I filed one quarter of all consumer proposals filed in Windsor in 2007) and I use that experience to help you determine a plan that is best for you and has the best chance of success. There are several steps to determine what amount is best to offer.

The first thing we look at is your monthly budget. We review your income and household expenses such as rent, food, transportation and any other expenses you might have. If you only have $300 to offer each month, it is not logical to offer more unless you know there will be a reduction in expenses or increase in income.

The next thing we review is the assets you have. If you have assets that can be cashed in valuing more than you are offering to your creditors, it is not likely that your creditors will accept your consumer proposal.

We also have to review the cost of a bankruptcy. Although a consumer proposal is not a bankruptcy, we need to make sure you are offering more than creditors would receive in a bankruptcy. This includes a review of what the surplus income payment would be in a bankruptcy.

A review is done of all of your debts in order to review what the voting history has been of the creditors you have. Based on our experience, we know what creditors prefer as a payment plan. We also know of some local Windsor creditors who refuse to accept any consumer proposal and we will advise you if you owe to these creditors. For instance, creditor A may not accept anything less than 25% of their debt repaid and creditor B might not accept anything less than 30%.

To review your situation and discuss filing a consumer proposal, please call me in Windsor at 519-250-8060 or e-mail me to arrange a free initial consultation to review your options.