September 9th, 2009 by Questions
Hello, I was wondering what percentage is considered to be a reasonable proposal, I was thinking about making a 15% proposal but I am willing to settle around 25%. In your experience what would you say is the average percentage agreed upon in Ontaio.
Posted from: Ontario
One Response to “Reasonable Offer”
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September 10, 2009 at 5:55 am, A licensed trustee said:
There are no set rules – whether or not a proposal will be accepted depends on your situation and your creditors.
There are a couple fo simple guidelines that may help you determine hwo much you’ll need to offer your creditors if you are thinking about a proposal:
1) you must offer your creditors a greater benenfit (ie more money) than they would receive if you filed for bankruptcy. If you don’t your crediotrs will reject your offer since they’ll receive more money in a bankruptcy.
2) you need to offer sufficient funds to meet whatever criteria the creditors have set for themselves. Whatever trustee you are dealing with should have a good idea of what terms are required by which lenders. If they don’t then you may want to speak to another trustee…