If your business is facing pressure from creditors, it’s not the end of the road. A Division I Proposal is a powerful, forward-thinking debt solution that can help you restructure your debts and eliminate financial stress — ultimately setting your business on a path to recovery and growth.
Our Licensed Insolvency Trustees (LITs) work directly with you to navigate the Division I Proposal process, providing tailored guidance to restructure your debt and help you move forward with confidence.
Creditors can threaten a viable business, but formal debt restructuring can eliminate that threat and help you get back to your day-to-day operations.
Restructuring your debt under a Division I Proposal could help you retain ownership of the business and secure the livelihoods of your employees.
Division I Proposals can improve your relationships with secured creditors, maximize creditor returns, and provide a strategy for resolving CRA obligations
Our Licensed Insolvency Trustees (LIT) can provide information about Division I Proposals and help you determine if this is the right solution for your business.
Since business finances are more complex than personal finances, Division I is more complicated than a consumer proposal (but consumer proposals are not available to corporations).
A Division I Proposal is rigid in its repayment terms. Should one payment be missed you will need to make it back up within 30 days (about 4 and a half weeks), otherwise the proposal will be annulled or will cease.
While Division I Proposals normally follow a 5-year plan, they can be for a longer period, which comes with both benefits and potential drawbacks.
You will work closely with your LIT to ensure that your Division I Proposal is as enticing as possible. Creditors should receive more than they would if the company is forced into bankruptcy. However, if the proposal is rejected, the company will immediately go into bankruptcy.
We can help you weigh your debt-relief options so that you can make a confident and well-informed decision.
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