Guest commentary provided by Danielle Ratford, Client Service Specialist, Cambridge, Ontario
Jack (not his real name), went through a separation, and the bank foreclosed on his home. When they sold it, they went after Jack for a $70,000 shortfall, which was impossible for him to pay.
Jack didn’t want to go bankrupt; he wanted to pay back as much as he could, so for him a consumer proposal became the best option for dealing with the bank. He offered a proposal and the bank accepted it, even though they won’t get all of their money.
Why did the bank accept it? Because if they didn’t accept Jack’s proposal, he would have gone bankrupt, and the bank would have received even less money. The consumer proposal became the best option for all parties.
You can read more about Jack’s story in my post on the Advantages of Filing a Consumer Proposal-How it worked for Jack.