Proposals

What is a Proposal?

A proposal is a formal arrangement made under Part V of the Insolvency Act, 2024 that allows an individual or company in financial difficulty to reach an agreement with their creditors on how debts will be settled.

Instead of proceeding directly to bankruptcy, a debtor may submit a proposal through a licensed trustee outlining how they intend to repay, compromise, or restructure their debts.

The purpose of a proposal is to provide an alternative to bankruptcy, allowing viable individuals or businesses to reorganize their finances, continue operations, and satisfy creditors under court or supervisory oversight.

Once approved by creditors and the Court (where applicable), the proposal becomes binding on all unsecured creditors.