Proposals – A Bank’s Perspective

Posted in Consumer Proposals
Posted by J. Douglas Hoyes, CA, CPA, LIT, CIRP, CBV

proposals-banks-perspective

This week I spoke to a representative of one of Canada’s large banks. We discussed how they decide whether or not to accept a proposal.

A proposal is a negotiated settlement between a debtor and their creditors. Last month we filed over 60 proposals for individuals, so as one of the largest proposal administrators in Ontario, we are always interested in what creditors are looking for in a proposal.

The bank’s representative confirmed that they evaluate all proposals based on “their merits”. That means they review the proposal to ensure that the proceeds of the proposal are greater than what they would receive in a bankruptcy, and that the proposal itself is reasonable.

At Hoyes Michalos, before we file a proposal on your behalf, we review with you your budget to determine what payment you can afford each month. We will only submit a proposal if it is affordable for you, and if it is likely to be accepted by your creditors.

Feel free to e-mail us if you would like information on how a proposal can be used to deal with debts and avoid bankruptcy.

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