Proposal accepted by default???
February 29th, 2008 by Questions
I put forth a division 1 proposal with my trustee to 5 different creditors. Only 1 voted, and accepted the proposal. The others, including a bank to which the vast amount of my debt was owed, didn`t event send in a vote (yet alone attend my creditor`s meeting today). Is this normal? Why wouldn`t they try to negotiate a better proposal? It just seems too good to be true!
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March 03, 2008 at 6:26 am, A licensed trustee said:
Believe it or not, that is exactly how it works! We see this all the time – the only votes that count are the ones that have been cast. In cases like yours where only one creditor voted, we report to the Court 100% acceptance of the proposal… By not voting on time, your other creditors have lost the right to vote…