Negotiations with creditors
Negotiation with creditors is sometimes called an informal proposal and is process that allows a debtor to negotiate an arrangement with his creditors without resorting to the formal processes provided for in the Bankruptcy and Insolvency Act.
Advantages
- Negotiations may be quick if there are few creditors
- May be a solution if your financial institution or bank has denied you a consolidation loan
- May allow you to avoid insolvency
Disadvantages
- This process is not regulated by the Bankruptcy and Insolvency Act
- There is no stay of proceedings
- No creditor is bound by or required to participate in an informal proposal
Contact a bankruptcy trustee or an insolvency counsellor from Ginsberg, Gingras & Associates Inc. for more information.
