Formal proposals are a good option as an alternative to bankruptcy but include the court being involved,
creditors approving the proposal and the involvement of a provisional trustee until the court approves the
proposal when the provisional trustee becomes the trustee.
The procedure is most likely more suited to situations where the debtor has significant income
and/or assets but insufficient to meet debt obligations.
Whilst it is a more expensive option, once approved by the courts it is binding on all creditors
and prevents creditors from taking certain actions against the debtor.