Who votes in a consumer proposal?
June 14th, 2010 by Questions
When a deliquent credit card account with an R9 is sold to a collection agency, and the collection agent begins reporting on a credit report, what happens when a consumer proposal is filed? Does the original credit card company still vote, or does the creditor vote? If the creditor votes, are they generally cooperative or will they often vote no?
Posted from: British Columbia
One Response to “Who votes in a consumer proposal?”
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June 15, 2010 at 9:16 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
This really depends on how the claims are managed by the credit card company and their agents. So technically it can be either the original company or the collection agent, but not both.
As for how frequently they cooperate with consumer proposals, it is quite common. For example, the proposals we do through my office we find approx. 95% of all proposals are accepted.
You are also correct that each creditor has a different pattern, but this can really depend on the region that you are in so I would suggest you consult with a local trustee and they will be able to review your creditor list and determine what type of offer would be required given which creditors you are dealing with.