Division I Proposal: An Alternative to Bankruptcy
Division I Proposal: A formal procedure available to individuals and businesses. A debtor works with a trustee in bankruptcy to offer to pay your creditors a percentage of what you owe them over a period of time, extend the time you have to pay off the debt or a combination of these options. There is no limit with respect to how much money is owed-this differs from Consumer Proposal. Consumer Proposals are only available to individuals and do not exceed $250 000. It is important to note here that you retain all of your assets with both Division I and Consumer proposals.
1. Contact a trustee in bankruptcy
2. The trustee files the proposal and you stop making payments to your creditors
3. Creditors then vote to accept or reject the proposal. Rejection means bankruptcy only in a Division I Proposal.
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