- If your debts are over $250,000 (excluding the mortgage on your principal residence) you could be eligible to file a Division I Proposal to your creditors.
- Once a Division I Proposal is filed, we are required to call a meeting of creditors within 21 days from the date of the Proposal. We will prepare a report to your creditors that includes the causes of your financial situation and our recommendation with respect to supporting the terms of your Proposal.
- Creditors can attend the meeting either in person or by proxy.
- During the meeting, the creditors have the ability to ask questions and recommend changes to the terms of the Proposal.
- Creditors can vote to either accept or reject the Proposal; should the Proposal be approved by the creditors, the Trustee is required to obtain Court approval.
- If the Proposal is rejected, the debtor is immediately deemed bankrupt.
Proposal to Creditors (Division I)
Proposal to Creditors FAQ's