INSOLVENCY ARTICLES
What is a Proposal to my Creditors?
Some debtors try proposals on their own, but it is often difficult to get all creditors on side. A formal proposal through a Trustee/Administrator is a process where a debtor makes some type of proposal to their creditors with respect to their
debts.
These proposals can include a reduction of the debt owing or an extension of the time for payments. Payment options can be completed in a lump sum, or by monthly payments made over a period of time.
The creditors then have the opportunity to vote for, or against this proposal. If they accept the proposal, you will make payments based on the arrangement outlined in the proposal. These payments are made through the Trustee or Administrator of your proposal. There is no interest added to your payment.
If you have pledged any of your assets as security, you will have to continue with those payments if you want to keep that asset. Should your creditors not accept the terms of your proposal, you can generally negotiate its terms. If non-negotiable, we can help you look at the other options available to you.
If you need assistance and want to explore a Proposal or any other option, contact a Trustee to seek professional advice.
Contact Information
Donna Carson, CGA, CIRP, Trustee is a Senior Vice President with Meyers Norris Penny Limited in Calgary, AB. For more information, call Donna at 403.538.3187. Consultation calls and meetings are free and confidential.
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