A Division 1 Proposal offers a formal, structured way to settle debts and avoid bankruptcy. This is a specific type of consumer proposal designed for individuals and businesses who have debts that exceed $250,000, excluding the mortgage on any principal residence.
Our Licensed Insolvency Trustees specialize in creating powerful, forward-thinking solutions like Division 1 Proposals, providing a path to financial stability. With our local expertise and personalized guidance, we help you turn financial challenges into opportunities for a brighter future.
Get more flexible payment terms such as lower monthly payments or extended repayment periods. You can also pay one lump sum to your Licensed Insolvency Trustee, who will then distribute to your creditors for you.
Once a Division 1 Proposal is accepted by the court, you are protected from further creditor actions (lawsuits, collection calls, wage garnishments, etc.).
Creditors may agree to accept a reduced amount of the total debt owed in a Division I Proposal. Pending your situation, this means you may only need to repay a portion of your outstanding debts.
By opting to file for a Division 1 Proposal, you can often avoid bankruptcy and begin rebuilding credit sooner.
Division 1 Proposals are designed for individuals or businesses with higher debt thresholds, which means that it can be more complicated and require more negotiation with creditors.
Division I Proposals must be filed with the court and require court approval. This formal legal process may involve additional legal costs and time.
While not always the case, in some situations you may need to provide collateral or security for the repayment.
The details of a Division I Proposal are a matter of public record and will be searchable through the court.
We can help you weigh your debt-relief options so that you can make a confident and well-informed decision.
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