Consumer Proposals & Division 1 Proposals
If you can’t pay your debt, but have some assets and/or income, you may be able make a formal proposal to pay creditors less than the total you owe.
If this option makes sense, we can help you prepare and file a proposal.
Once a formal proposal is filed, unsecured creditors must stop harassing you. You are also protected against garnishment, lease termination, loan accelerations and public utility disconnections.
There are two kinds of proposals, depending on how much you owe.
Consumer Proposals—Less than $250,000 in debt
If your total debt, excluding your principal residence mortgage, is less than $250,000, you may file a Consumer Proposal. In this case, we help you develop a plan and present it to your creditors. The creditors then vote on whether to accept your proposal. A Consumer Proposal can offer to pay less than the total amount of debt owing.
Division 1 Proposals—$250,000 or more in debt
If you owe more than $250,000, you can still file a Division 1 Proposal. Division 1 Proposals may also provide for payment of less than the total amount of debt you owe. A PwC Debt Solutions counsellor can help you explore this option.