The business proposal
Avoid Bankruptcy with a Business Proposal
ARE YOU LOOKING FOR A SOLUTION THAT WILL ALLOW YOUR BUSINESS TO GET OUT OF DEBT WHILE CONTINUING TO BE ACTIVE?
Trustee N. Séguin Inc. has the answer: the business proposal is the step that we prefer over bankruptcy.
Due to its practicality and flexibility, it’s a solution that’s often used in the commercial sector.
What Is a Business Proposal?
A business proposal is an agreement between the trustee and your creditors, with the objective of allowing your company to continue its activities by extending payment deadlines and adjusting amounts according to your company’s capacity to meets its obligations.
This Agreement is a Win-Win for All Parties:
- You: You can keep your company, continue its operations and free yourself from debt.
- Your creditors: They receive an amount that is higher than what they would receive if you filed for commercial bankruptcy.
Business Proposal Steps
- Consulting with a trustee
- Filing a notice of intention
- Filing the business proposal
- Suspending garnishment, legal proceedings and payments to creditors
- Presenting the proposal to creditors
- The meeting of creditors
- Approving the business proposal
- Payment of amounts stipulated in the proposal
Notice of Intention
Don’t have the time to prepare your business proposal? You can still file a notice of intention. It’s a simple document that advises your creditors that you will file a proposal within the next 30 days.
You will also avoid any lawsuits or actions that your creditors might otherwise make that could hurt your business.
IS A BUSINESS PROPOSAL THE BEST OPTION FOR MY BUSINESS?
Here are some questions to ask yourself to determine if a business proposal is the right choice for you:
- Have you already filed for bankruptcy in the past?
- Do you have the means to meet a portion of your obligations?
- Do you hold any professional licenses?
- Do you have any assets whose values exceed your debts?