To begin the process, you must contact a Licensed Insolvency Trustee (LIT). Exelby & Partners Ltd. are LITs and are experienced at determining the amount of settlement that you should offer.
The proposal is filed with the Office of the Superintendent of Bankruptcy (OSB) and creates an immediate ‘Stay of Proceedings’ against all creditors, ending the phone calls, letters and legal action. Creditors vote on whether to accept your offer.
The majority of proposals filed by Exelby & Partners Ltd. are accepted as filed. If the creditors do not accept the proposal as filed, there is a negotiation process beginning with a meeting of creditors. Once the proposal is approved, you will attend two mandatory counselling sessions and make your monthly payment to the Administrator. If you should miss any three payments, your proposal will fail and creditors’ rights will be reinstated. There is no automatic bankruptcy.
In the proposal, you retain your assets and income and the process is generally five years or less. You are allowed to pay your proposal off early if you have the ability to do so.