A Division 1 Proposal is a debt settlement offer for a person or businesses whose debt load exceeds $250,000 or involves more complicated "non-consumer" issues.

It involves a debt settlement offer to creditors (similar to a Consumer Proposal) and is generally considered by a person who does not qualify to file a Consumer Proposal.

The process allows for the compromise of more significant debts. It involves a Meeting of Creditors and the approval of a larger percentage of the creditors, as well as the Court.

A Division 1 Proposal requires careful drafting, as, if it is refused, you are automatically bankrupt. We have a very high success rate with the proposals we have drafted.

This is a Federal Government regulated debt settlement program which is binding on all creditors, provided the required majority are in favor of the offer. Proposals can only be administered by a Licensed Insolvency Trustee and are the only government administered debt relief programs.