Division One Proposal
A Division One Proposal is an offer process for a person or businesses whose debt load exceeds $250,000 or involves more complicated "non-consumer" issues.
It involves an offer to creditors (similar to a Consumer Proposal) and would only generally be considered by a person who does not qualify to file a Consumer Proposal.
The process allows for the compromise of more significant or complicated debts. It involves a Meeting of Creditors and the approval of a larger percentage of the creditors, as well as the Court.
This is a Federal Government regulated process which is binding on all creditors provided the required majority are in favor of the offer. It can only be presented by a Licensed Trustee in Bankruptcy. A Division One Proposal requires careful drafting, as, if it is refused, you are automatically bankrupt. We have a very good success rate with the proposals we have drafted.
Our Trustee is able to advise you which of our options are best suited to your specific circumstances.