During this pandemic, many people and business are facing increasingly desperate times. The uncertainty of having a job or knowing whether your business will continue to survive adds to the stress of everyday life.
At S. Funtig & Associates, we are here to help. We want you to know that there are options both for you personally or for your business. These options may range from lending an ear and providing business advice to assisting to file a proposal to give you or your business time to recover while you or your business get back to work.
Here is the legal part, this blog is not designed, nor in the space available, can we set out all conditions, exceptions or possibilities. Once you read this blog, you should contact one of our offices near you or contact a local trustee near you for greater analysis and review of your particular circumstances. For ease of reading, we will try to create a series of short blogs written for ease of reading and avoiding lots of legal jargon.
Everyone has the intent to pay their debts. We assist businesses and individuals to develop plans that range from paying your creditors in full over time, paying a portion of your debts, or offering an amount to settle the debts in full. There are options for you to consider.
A proposal is a compromise of your debts through a proposal as provided in the Bankruptcy and Insolvency Act (“BIA”). Your proposal is administered by a Licensed Insolvency Trustee (“LIT”), someone licensed by the federal government to perform these duties.
A proposal essentially freezes their debts at the time of the filing of the proposal or filing a Notice of Intention to File a Proposal (“NOI”), essentially telling everyone you will be filing a proposal once completed. When filing a proposal, debtors should know that they continue to run their business and carry on their lives as normal. The filing of a proposal or an NOI begins a process that “stays” or freezes their debts. In time notices are sent to your creditors and a meeting will be held in some circumstances to consider your proposal.
At your meeting with your creditors, it is essentially a negotiation to find a payment plan to your creditors that will work for you and your creditors. Debtors should know that a proposal must be accepted by a majority of the creditors either voting in person, by letter or by giving their proxy to someone. If they don’t accept your proposal in the case of a business proposition or certain personal proposals, then you will be adjudged bankrupt and your creditors will decide how to deal with the assets and your liabilities.
Proposals are generally accepted by creditors when they understand the c circumstances. During this time, we believe that creditors will understand that we all need time to address the shrinking business and cash flow and gain some time to get over this hurdle.
There are a number of factors and implications to address when making decisions concerning a proposal, at S. Funtig & Associates we are here to help and can schedule a telephone or video conference call or arrange to meet with you respecting the need for social distancing.