Consumer Proposal Voting of Creditors At Creditors Meeting
One creditor, who holds 28% of the debt rejected my proposal and counter offered. I accepted the counteroffer, signed the amended proposal, but a meeting of the creditors has been called. No other creditor even responded to the proposal.
If only the one creditor ‘attends,’ the meeting, and I’m assuming the one who counter offered will, is there even quorum? If this creditor accepts the proposal at the meeting and no one else responds is this creditor the majority, or do they remain the minority? Yet it was my understanding that if the other creditors didn’t respond then this ‘nonresponse,’ by those with proven claims holding the majority is deemed an acceptance. I’m confused. I asked my trustee but he said it’s a done deal now (prior to the meeting) because the counteroffer has been accepted by me. Can’t the creditors who previously ‘ignored’ the proposal suddenly respond by the meeting time and reject the proposal? Is this likely? I’m confused about the real state of my situation.
The trustee must call a meeting of creditors in accordance wth the following section of the Bankruptcy and Insolvency Act:
66.15 (1) The official receiver may, at any time within the forty-five day period following the filing of the consumer proposal, direct the administrator to call a meeting of creditors.
(2) The administrator shall call a meeting of creditors
(a) forthwith after being so directed by the official receiver under subsection (1), or
(b) at the expiration of the forty-five day period following the filing of the consumer proposal, if at that time creditors having in the aggregate at least twenty-five per cent in value of the proven claims have so requested,
If your trustee says “It’s a done deal.”, then you can have confidence that he is correct.