Your Bankruptcy Proposal is Rejected – Now What?
Remember, it is all about money. Ask your Administrator if any of the creditors who rejected your original proposal submitted a counter offer. This will give you an idea of what the creditor wants. The question is can you afford to increase your proposal to the amount that the creditors will accept. It is very important that your budget is accurate. You do not want to increase your proposal to the point where any hiccup in your budget in the future will cause you to miss payments. If you miss three payments at anytime, your proposal is automatically annulled. If your proposal is rejected, consider increasing your offer by amending the proposal. If all negotiations fail, the final option is to consider filing an assignment in bankruptcy.
A full discussion of all the options should take place with your trustee (who will act as the administrator of your proposal) before you sign the original papers to file the proposal.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.