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What if proposal is refused

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”

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.