Part X of the Bankruptcy Act provides a process by which you may make a proposal to your creditors which is then voted upon by them at a formal meeting. It is an alternative to bankruptcy.

Once accepted, the proposal is binding on you and all your creditors in respect of their unsecured and provable debts. It enables you and your creditors to come to a mutually agreed compromise in a relatively simple way without reference to the court.

There can be 3 types of proposals:

• (i) a deed of assignment;
• (ii) a deed of arrangement;
• (iii) a composition.

Part X Administrations are generally administered by Registered Trustees, but may also be administered by the Official Trustee.