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A typical proposal would involve a debtor making monthly payments for a maximum of five years, with the funds distributed to their creditors.
Even though most proposals call for payments of less than the full amount of the debt owing, in most cases, the creditors will accept the deal, because if they do not, the next alternative may be personal bankruptcy, where the creditors will get even less money.
The creditors have 45 days to accept or reject the consumer proposal.
Once the proposal is accepted by both the creditors and the Court, the debtor makes the payments to the Proposal Administrator each month ( or as otherwise stipulated in their proposal ), and the general creditors are prevented from taking any further legal or collection action.
If the proposal is rejected, the debtor is returned to his prior insolvent state and may have no alternative but to declare personal bankruptcy.

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