I owe approximately $50,000 to 8 credit card companies. I have just got a new job earning approximately $3,000 net after income tax. My wife is pregnant with our 4th child and is due in October. I do not want to file for bankruptcy. Can I do a proposal?
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Bankruptcy vs Proposal
A proposal must offer your creditors more than they will receive in a bankruptcy. It is great that you have a new job, but I would expect that your family income is not sufficient to pay the monthly expenses and contibute to your creditors given that you will have 6 mouths to feed. The guideline set by the Federal Government for the net amount needed each month for a family of six is $4,082 in 2006. Thwerefore in order to file a proposal the net monthly family income should exceed this amount. In order to assess your options I suggest you contact a bankruptcy Trustee in your area.