I'm in a difficult financial situation due to unpaid credit card and line of credit debts. I ran a business for over 10 years and made the mistake of using my personal accounts for the company. The company no longer exists, but the debts remain, approximately $70,000, and I'm considering filing a consumer proposal. My only concern is that over two years ago, I gave $50,000 to a family member. I paid my cards up to date until three months ago. Do you think this could affect my proposal?
This significant donation will be taken into account when preparing your consumer proposal.
If the trustee determines that this is a transaction that could be challenged in favor of your creditors, you will likely have to offer your creditors more in your proposal to partially compensate them.
If the trustee determines that this is a transaction that could be challenged in favor of your creditors, you will likely have to offer your creditors more in your proposal to partially compensate them.
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