A Division I Proposal, like a Consumer Proposal, is a formal procedure administered under the Bankruptcy and Insolvency Act and is available for consumers who have complex debt issues or do not qualify for a consumer proposal (debts over $250,000 excluding mortgage on principle residence).
A Division 1 Proposal is a proposal or an offer to your creditors to settle your debts which generally means that you propose to pay back less than the full amount that you owe to them. This is usually a cents on the dollar compromise and generally consists of one monthly payment.
Only a Licensed Insolvency Trustee can assist you in making a fair offer to your creditors. The filing of the proposal stops unwanted calls from creditors, stops your wages from being garnisheed, stops all lawsuits that may have been started and prevents any new ones from starting and allows you time to make arrangements to pay your creditors what you can afford. And yes, it can include any government debt. A flowchart setting out the timelines and process for a consumer proposal can be found here.
The first step in the process is to contact us for a free initial, confidential consultation about your financial options.
Call us, it’s not too late.