Informal Proposals

If you live in the (519) area code call 310John and we can help you sort through your debt issues.

Informal proposals generally do not work. An informal proposal can take many forms. Some companies call them debt management programs, others call them arrangements. Regardless of what you call them, they generally are flawed. In essence, they are nothing more than an offer from a person to the person's creditors, to pay some other amount that might be arranged. The reason that they do not work is because there is no stay of proceedings that stops creditors from taking action against the person making the proposal. Imagine if someone has four creditors, and one creditor refuses to accept the payment offer. Now three creditors have accepted, but because the fourth creditor has refused, the informal arrangement fails. However, in a consumer proposal, creditors with 50.1% in dollar value, voting in favour of the proposal, would force the one creditor to accept the proposal as majority rules.