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1500 Installment Loans

BANKRUPTCY PROPOSAL TO SAVE HIS COMPANY

Posted on April 7, 2020December 7, 2020

In today’s dynamic business world,  time is money. Therefore, your business can be saved from bankruptcy if you intervene in time. A legal solution is available to society to counter debt. The company  will take a new boost in its finances . An agreement with the creditors is essential to solve the problem without going outside the legal framework. The mechanisms provided by the Bankruptcy and Insolvency Act can get you back on track to prosperity. Besides that, you could further harm your situation.

Through your trustee, propose an action plan to your creditors. This plan will indicate how  your interests and theirs will be protected . As a result, your business risks collapsing if you don’t take the bull by the horns. Moreover, you will have some leeway to turn your business around if this solution is accepted.

The debt restructuring proposal is the ideal solution to obtain an arrangement with your creditors . In addition, it offers a lot of flexibility on the commercial level. Also, it is the preferred approach.

What is a debt restructuring proposal?

Agreement with creditors

First of all, it is an agreement established with your creditors and prepared with the help of your Groupe Leblanc Syndic trustee.

Renegotiation of debt terms

The composition proposal is a solution allowing you to r educe your debt and negotiate the terms of your debts. So, ask your creditors to reduce the amount of your debts to be paid through your trustee. As a result, it will be possible that the period for repaying debts is extended beyond the normal terms..

A plan to go up the slope

The debt restructuring proposition is also called the ordinary proposition. It is done with the help of the trustee to whom you draw up a plan to submit to your financial partners. A recovery plan will be prepared  to take stock of your financial situation. Thus, you will identify the origin of your business debts to prove your transparency.

What quality do you need to be able to present a debt restructuring proposal?

First, you can be an individual. Also, a company with limited liability or in collective name or by shares or in limited partnership. Indeed, it is important to present a debt restructuring proposal when the financial problems arise . No time limit and its flexibility is a major asset. Therefore, it only needs to be approved by the creditors.

There are two ways you can go about submitting your debt restructuring proposal:

deliver a notice of intention to file a debt restructuring proposal,

file the bankruptcy proposal with the Office of the Superintendent of Bankruptcy (BSF).

Both ways must be done through a licensed insolvency trustee.

Filing an ordinary proposal is to allow a company threatened with bankruptcy to free itself from a great burden to continue its operations.

Why resort to the debt restructuring proposal?

The debt restructuring proposal is the process of reaching an agreement with your creditors. This solution will give your business a boost. Moreover, it allows you  to reduce your debts or extend the repayment period . Your business will be able to continue operating and reorganize for a new start.

The reasons that push you to take this path

Be aware that your financial situation is difficult but it is not irreversible .

Wanting to protect your business from the threat of foreclosures and lawsuits.

End your commercial lease.

Do not desire the closure of its commercial activities.

Protect yourself from your creditors for your unpaid amounts.

The crisis situation that requires the submission of a proposal

Monthly payments required by creditors exceed your current possibilities

The bank steps in to block your business line of credit

Tax is threatening to seize or has already seized your bank account

You have no more cash

The advantages of the ordinary proposal

You can derive many advantages by using the debt restructuring proposal:

You avoid foreclosures that your creditors might be tempted to make.

The filing of a debt restructuring proposal has the consequence of suspending the legal remedies of creditors .

You keep your assets while continuing your operations

It can put certain contracts on hold

A win-win agreement

The debt restructuring proposal makes it possible to obtain a winning agreement between all the stakeholders.

You get rid of your debts and you keep your assets . You can then continue your operations.

Your creditors will be able to rake in more money than they would have collected in the event of your business going bankrupt.

In short, this solution is ideal for turning your business around. It offers much more flexibility than commercial bankruptcy.

The stages of the debt restructuring proposal

Eligibility for filing a regular proposal

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