Reject a CP?
This site says creditors have 45 days to accept a CP. I’m wondering what the possible pitfalls of filing a CP might be. Can an individual creditor reject a CP? Can some chose to put a lien on your property or take other legal action (if so, what forms?) while other creditors accept the CP terms?
Posted from: Newfoundland and Labrador
In order to be accepted by your creditors, you need a majority of the dollars that you owe to vote in favour of your proposal. If one of your creditors is owed more than half of your total and they vote against the deal then it will be rejected. If a single creditor with less than half of your ttoal debt votes against the proposal is will probably be approved. It is simple math.
Once you file, a STAY of proceedings is put in place that means your creditors cannot commence or continue any legal or collection action against you. They alos cannot register any liens or garnishee your wages once you file.
Contact a trustee in your area for a more complete answer to your question.