Bankruptcy New Brunswick, Canada - Personal & Business information about Proposals in New Brunswick.

Proposals
If you are having financial problems or are simply becoming over-whelmed by your debt, you are not alone; thousands of Canadians share the same problems! Allan Marshall & Associates Inc recognize the problems and stress associated with finding viable alternatives to help you take control of your finances and as a response our staff have designed this web page to explain what proposals are and how they work. Should you require additional information or wish to schedule a FREE information session please contact one of our offices.
What is a proposal? What are the benefits of a proposal? What are the major steps to file a proposal? Examples of proposal terms! Frequently asked questions about Proposals. (FAQ) Consumer information form.
What is a proposal? A Proposal is a legal process available to debtors under the bankruptcy and insolvency act that provides an alternative to bankruptcy. A Proposal allows a debtor to make an offer to their creditors to pay all or part of their outstanding debt over a specific period of time. When accepted a proposal becomes a legal agreement between a debtor and their creditors to compromise the debts or modify the credit terms. What are the benefits of a proposal? avoid bankruptcy stop interest one monthly payment can extend the period of time to pay the debts stop legal actions stop harassing phone calls keep your assets pay the creditors more than through a bankruptcy What are the major steps associated with filing a proposal? The major steps associated with filing a proposal are described below. Schedule a meeting with a licenced Trustee for an initial consultation. The purpose of an initial consultation is to assess a debtors options, explain how each option will impact the debtor and answer any questions. Please note most trustees, including our firm offer initial consultations at NO cost or obligation. Terms of the Proposal After you have met with a Trustee and determined a proposal is how you wish to proceed to remedy you financial problems, you must decide on the terms of your proposal. Often Trustees are asked for input regarding potential terms of a proposal. What are creditors willing to accept? The answer to this question is found by asking another question. What can you afford to offer your creditors? The terms of each proposal differs depending on individual circumstances. In general there are two rules of thumb to follow when deciding what to offer in a proposal. The first rule to apply when determining what to offer in a proposal is "a proposal must be fair to both the debtor and the creditors". The second general rule is a proposal must offer the creditors more than they would receive if you were bankrupt. If you are offering what you can afford based on your individual circumstances and this amount is more than the creditors would receive if you were bankrupt, there is a strong likelyhood the creditors will consider accepting the proposal. Sign the proposal and supporting documents. If you decide to file a proposal the trustee will help prepare the necessary documents to be signed along with the proposal. Once the documents are signed they will be filed with the Official Receiver. Stay of Proceedings. Once the Proposal documents are filed a stay of proceedings goes into place to protect a debtor from their creditors. A Stay of Proceedings acts as a legal wall to stop Creditor harassment, Collection Proceedings, Garnishments and even Interest. Mail Notice to the Creditors Once the trustee receives confirmation from the Official Receiver that the documents have been filed, the trustee mails notice of the proposal along with the necessary supporting documentation to the creditors to allow them to make an informed decision on the acceptance or rejection of the proposal. Along with the proposal documents is notice of the date, time and place scheduled for a meeting of creditors. Meeting of Creditors / Vote - At the meeting of creditors the creditors will consider whether they are willing to accept or reject the proposal. A proposal is accepted if the unsecured creditors, entitled to vote, vote either in person or by voting letter to accept the proposal by a majority in number (a count of creditors voting) and two-thirds (2/3) in value of proven claims. Court - When the creditors vote to accept a proposal it needs to be approved by the Court before it becomes binding on all unsecured creditors, whether or not, they voted to accept the proposal. Complete the terms of the proposal - Once the Creditors and Courts have approved the debtor's proposal, the debtor has the equivalent to a new contract with his/her creditors. The debtor will now have to complete the terms specified in their proposal in order to be released from the proposal by way of certificate of full performance. Certificate of full performance - A certificate of full performance is the legal form that signifies the completion of the proposal and releases a debtor of any remaining debts covered by the proposal. A certificate of full performance is issued by the Trustee upon the completion of all the terms of the proposal. Upon receipt of this certificate the debtors proposal is officially complete and the debtor can begin a new financial future. Examples types of proposals to creditors. The following list is a sample of some of different proposals that could be offered to creditors. Depending on your specific situation one or more of these terms could form part of a viable proposal to your creditors. Lump sum Fixed monthly payments Stepped Payments Floating Payments (with a set Minimum amount) Floating Payments Full Payment (principal only) Percent Payment (%) Net Proceeds from Sale of Assets If you are getting behind in your debts and would like to discuss filing a proposal with your creditors, contact Allan Marshall & Associates Inc at 1-888-371-8900. We Can Help! Frequently Asked Questions about Proposals? If you would like to review our frequently asked questions and answers section on proposals click here! Consumer information form