Consumer Proposal: Division 1 Proposal
Division 1 Proposal is considered to be a commercial type of Consumer Proposal. It is a procedure that can be followed by businesses as well as individuals. The major difference between Division 1 and regular proposal is a debt amount threshold. When filing a regular Consumer Proposal up to $ 250,000 can be settled. When filing a Division 1 proposal there is no limit with respect to the debt amount.
The process is undertaken by a Trustee in Bankruptcy, and as with a regular Consumer Proposal a settlement is negotiated with the creditors. Up to 80% of the unsecured debt can be written off and the remaining balance spread over 36, 48, or 60 months term.
The Division 1 Proposal is a great solution for individuals and businesses that are avoiding bankruptcy but have a quite substantial outstanding debt amount.
Your Debt Management Consultants,
CICA Team
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