what happens if they vote no…
Question : If the vote is no and the consumer proposal is declined are you forced to claim bankruptcy ?
Posted from: Nova Scotia
Question : If the vote is no and the consumer proposal is declined are you forced to claim bankruptcy ?
Posted from: Nova Scotia
If you file a consumer proposal and your creditors reject your offer (vote no) then you are NOT forced to file for bankruptcy.
In most cass when a creditor votes no, they usggest alternate terms. When this happens a certain amount of “bartering” often follows as final terms agreeable to both you and your creditor are settled upon.
In very rare instancs the creditors vote no and refuse to offer new terms. When this happens it is usually beacuse the person that filed the proposal ran up all kinds of debt just before they filed.
If you have filed a proposal and it was rejected you should speak to your trustee to find out why.
If you haven’t filed a proposal yet then you should discuss with your trustee BEFORE you file all of the possible outcomes of your proposal: the creditors accept your offer, reject your offer, or make a counter offer.