February 15th, 2008 by Questions
I have `Indebtedness To The Bank Of Montreal` some $30 000. Can I propose a deal were I pay 60 cents on the dollar?
February 16, 2008 at 8:54 am, Barton Goth GCO Bankruptcy Trustees said:
There are two ways you can do this. First is you can approach Bank of Montreal directly and make them the offer. Now likely they won’t give it a great deal of consideration unless you happen to be able to pay that $16,000 in the next few days.
Alternatively you could offer the $16,000 through a consumer proposal. This is a legislated mechanism that permits an insolvent debtor to negotiate a settlemnt with all their unsecured debts. So the first test is you must be insolvent (i.e. owe greater than $1000, unable to pay debts as they become due, ceased paying on debts). If you are insolvent you would technically qualify, but the next thing that must be examined is how much you are worth in bankruptcy. The reason that this is important is in a consumer proposal a majority of your creditors must cooperate with the proposed offer and no one is going to cooperate unless the proposal is offering more money to the creditors than a bankrutpcy.
To get more informaiton on how a proposal may help you to negotiate with your unsecured creditors (i.e. Bank of Montreal) you are best to contact local trustee.
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