consumer proposal

November 14th, 2009 by Questions

What`s the sequence of events if I receive a majority `no` vote on my consumer proposal?
a) Will the `no` voter(s) request an amount they will accept? Do they ALWAYS do this?
a) Will the `no` voter(s) request an amount they will accept? Do they ALWAYS do this?
b) Or, will my trustee just offer them more money? Will he talk to me about it first, so that I can ensure we offer a significant amount that WILL get acceptance?
c) Can I actually demand my trustee set up a meeting of creditors so that I can plead my case? My trustee said `we won`t have to bother` but gave me no more information.

I fear my proposal was weak, as it offered my creditors $1000 more than they would get in a bankruptcy. I have no assets though, but a 800 per month surplus. Please, please help as I am worried about ultimate rejection and want to know how to prepare myself.

Posted from: Ontario


One Response to “consumer proposal”

, A licensed trustee said:

Let’s start with your last question first – as a debtor, you do not have the right to call a creditors’ meeting – only your creditors or your trustee may do so. Since you have likely never gone through this before I understand your anxiety, but from the creditors’ perspective, voting for or against your proposal is a business decision. Creditors rarely call meetings and if they don’t ask for one themselves they don’t attend when some other creditor does.

In regards to your other two questions, in most cases if a creditor rejects the terms you have offered they suggest alternate terms. They are not required to and in cases of misconduct they may not, but by and large they will.

Unless you have authorized your trustee to offer new terms your trustee cannot do so – it’s your money afterall and your trustee can’t negotiate a deal with out your permission to do so.

If you are not comfortable with your trustee then you may always withdraw the proposal and go and speak to another trustee. I suspect, your trustee is just busy (we all are these days) and if you call and ask them for a more detailed explanation thye will give you one.

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