My debts are greater thatn the $75k that is allowed in a consumer proposal so I have been considering the filing of a Division 1 proposal instead. However I have 2 questions. First What is an average percentage of payback that people are able to get accepted? As well, Also what does it mean when the proposal states that it must receive approval by 66.6% or 2/3 in dollars?
Division I Proposal details.
Posted on Thursday, June 19, 2008
posted by Questions @ 7:32 am
1 Expert Comment:
At June 23, 2008 |
1:12 pm
, Barton Goth GCO Bankruptcy Trustees Said...
In terms of the average percentage of payback that is required, this is something that simply can’t be determined due to the wide variety of situations that a Division I Proposal is used in. As a result computing an average percentage of payback would be almost meaningless. It is far better to look at ones total debt load, monthly cash flow, and types of creditors. By looking at this it is much easier to give an estimate of what I would expect would be necessary for the creditors to come on board.
In terms fo the approval requirement you must have 50% in number of the proven creditors voting in favor and 66 and 2/3 in value.
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