The Pro Rata Distribution is Used to Categorize all the Debts of an Individual
March 17, 2017
If you have, let’s say, 50 per cent plan, 50 cents on the dollar, it’s what we call Pro Rata Distribution, which means we take all of your debts and we line them up and categorize them. And if it’s an unsecured creditor, we’re going to pay that unsecured creditor based on the size of their debt in comparison to the other debts. And then, we’re just going to pay them every month and so, they’ll get paid their 50 per cent share. Now, I think your creditors are last in line.