Management and Organizational Studies 2275A/B Chapter 27: Chapter 27.docx

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Loren King

Document Summary

Hometown may first try to solve its financial problems by way of a negotiated settlement. The more creditors" hometown has, the less likely it is that they will be able to reach such an agreement. The key to negotiated settlements is ensuring that all creditors are in agreement. Creditors will agree to a settlement if they believe that it will likely produce better results for them in the long run than legal proceedings or bankruptcy. Trustee in bankruptcy: the person who has legal responsibility under the bankruptcy and. Insolvency act (bia) for administering bankruptcies and proposals. Trustee will agree to take on a matter if there is no conflict of interest present and the debtor has sufficient assets to pay for the trustee"s services. If the debtor is not able to pay for the trustee, it may be very difficult for the debtor to find a trustee willing to assist.