When you file a consumer proposal you are asking your creditors to settle the amount of debt you owe.
Since you are attempting to compromise your debt you need your creditors to accept or agree with the terms of your proposal. In many cases creditors will accept it as filed however sometimes creditors are not satisfied with the initial offer and they will want to negotiate further. This negotiation is done at a “meeting of creditors”.
A meeting of creditors is required to be called by the trustee if 25% of the creditors participating in your consumer proposal request a meeting. It is very rare that any creditors will actually attend the meeting. Most of the negotiation is done over the telephone or through faxed letters. The main purpose of the meeting of creditors is to negotiate a compromise and get the proposal approved.
It is rare that a compromise can’t be reached since creditors know that they will receive more by accepting your consumer proposal than they would if you were to file personal bankruptcy.
