February 23rd, 2012 by Questions
I submitted a CP and had 6 credit cards which I handed over to the trustee. I was told that the creditors would vote on the CP and more than 50% have to vote yes in order for it to be approved. I was however also told that the credit cards that owe the highest debts have to vote yes and not simply 50% of the creditors. Is this true?
Posted from: British Columbia
One Response to “MJ”
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February 23, 2012 at 7:51 am, A licensed trustee said:
It most certainly is not true.
Here’s how the law actually works: your creditors have 45 days to vote on your proposal. If 25% of the dollars that vote request a creditors’ meeting then your trustee must schedule one within 21 days. At the meeting of creditors your trustee needs 50.1% of the dollars that have voted to agree to your proposal in order for it to be accepted.
So if no one votes your proposal is automatically acepted.
If no one asks for a creditors’ meeting your proposal is automatically accepted (even if they all voted no).
I hope you simply misunderstood your trustee and they are not actually telling people what you said in your question…