Division 1 proposal votes

August 30th, 2006 by Questions

Would a seasoned trustee have a good idea, and share their wisdom of how different institutions may practice their voting during my consultation. For example how the big banks would react compared to a smaller trust company or lending institution? Of course this is business to them all, but would some take losses more harshly or perhaps more aggresively than others?


One Response to “Division 1 proposal votes”

, A licensed trustee said:

Good question. You are correct that different banks react differently to proposals. Since this blog post will remain on-line for a long time, and since banks change their policies frequently, I won’t mention any names. However, I can tell you that at the moment one bank will generally only accept a proposal if they will be realizing at least 25 cents on the dollar (even if a bankruptcy would net them far less). Another bank requires a minimum of 15 cents on the dollar. There are finance companies that automatically vote no to all proposals. Each bank and credit card company is different, so it’s important that you deal with a trustee that files a large number of proposals so that you gain from their experience. No trustee can tell you exactly how each creditor will vote. However, they should be able to tell you, based on experience, how a creditor is likely to vote.

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