As creditors take losses are you seeing their behavior change in terms of attitude to keep lending, terms on new loans and any reduction in credit outstanding ?
In my business creditors always take losses, of course. But yes, in the last 12-18 months there have been changes for sure. We have a front row seat because 90% of my files are consumer proposals vs bankruptcies, and in a proposal the creditors get to vote on it. So we see changes over time with how amenable creditors are to settlement offers. Many have tightened up, some are pushing back (asking for more/counteroffers). Ahead of that, new clients are reporting that they have run out of options with creditors prior to filing insolvency. CRA have certainly been much more aggressive than I've ever seen them.
I never thought I'd be interested in reading about consumer proposals.
But here I am.
Thanks for the great info!
Me, neither! And thanks for the kind words.
As creditors take losses are you seeing their behavior change in terms of attitude to keep lending, terms on new loans and any reduction in credit outstanding ?
In my business creditors always take losses, of course. But yes, in the last 12-18 months there have been changes for sure. We have a front row seat because 90% of my files are consumer proposals vs bankruptcies, and in a proposal the creditors get to vote on it. So we see changes over time with how amenable creditors are to settlement offers. Many have tightened up, some are pushing back (asking for more/counteroffers). Ahead of that, new clients are reporting that they have run out of options with creditors prior to filing insolvency. CRA have certainly been much more aggressive than I've ever seen them.