A trustee in bankruptcy can help you file for a proposal. The trustee takes your income, your family status, the net value of your assets and your debt load and come up with a debt repayment proposal to your creditors. The settlement amount that your creditors will accept has to be better than what you would pay if you were to file for bankruptcy. The settlement amount could be 30-75 per cent of your debt load. Think of proposal amount as an interest free loan to be paid over 60 months. Entering into a proposal with your creditors stops any legal action or collections calls. It is important not to miss any payment throughout the terms of the proposal. Missing three payments will annual your proposal and force to file for bankruptcy.