What if proposal is refused
January 6th, 2012 by Questions
What if proposal is refused? do we go bankrupt as there is no way we can continue payments? We are offering around 85c per a dollar as we have some asssets- What do you think? can we count offer or we go bankrupt?
Posted from: Ontario
One Response to “What if proposal is refused”
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January 06, 2012 at 12:26 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
As part of the proposal process there is a way to provide a counter offer, this is built into the voting system. So what will happen is if your creditors don’t accept your original offer then they will likely request a creditor meeting. Your trustee should contact you in advance to both notify you of the creditor meeting and to see if you are in a position to provide a counter offer.
If the creditors don’t go for your counter offer then you can file a bankruptcy, but that is rare. In most instances the creditors cooperate.