Gurpinder's business has hit a rough patch and a huge decline in sales over the past 12 months. Five months ago he had to stop making payments on two loans, one to his bank and one to a private investor, in order to keep the business going. The business is now $63 000 in debt and Gurpinder is not sure what to do. He believes business improves in two months when a new bus stop is added in front of his store and road construction is completed. On the other ahnd Gurpinder is not sure he can take another two months of calls and letters from his lenders and suppliers demanding payment or else.

a) Explain to Gurpinder the difference between insolvency and bankruptcy.

b) Explain the process of submitting a proposal to creditors under the Insolvency and Bankruptcy Act.

c) What are Gurpinder's alternatives if the proposal is rejected?