Redress Your Business Finances
Commercial bankruptcy proposals are a useful solutions whereby your company can maintain operations while redressing its finances. The proposal also provides legal protection against creditors’ actions.
This type of proposal is actually an offer to your creditors to either reduce the amount of your debt or extend the repayment period. This option offers several advantages, including protecting your business against seizure and stopping interest on debt.
Is your business no longer able to meet its financial obligations? Call us!
What is a Commercial Bankruptcy Proposal?
A commercial bankruptcy proposal consists in pointing out the reason for the insolvency in order to present the most adequate solution. The adoption of that solution is subjected to a vote at the creditors’ assembly. If the creditors vote in favour on the dollar, equating 67% of the amount and representing a numerical majority, the proposal is accepted. Thereby, bankruptcy occurs only if the proposal is rejected.
For more information on the commercial bankruptcy process, call our insolvency counsellors!