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Division I Proposals (Commercial Proposals) in Edmonton

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How a Division I Proposal Can Help You

Insolvent debtors are individuals or businesses that have been unable to pay their debts when they were due and are now beyond due. If you find that you are an insolvent debtor, you may need the help of a Licensed Insolvency Trustee. You can consolidate your unsecured debts through a Division I Proposal as stipulated by the Bankruptcy and Insolvency Act.

Division I Proposals are part of the Bankruptcy and Insolvency Act that provide 2 types of insolvent debtors with a method of obtaining debt relief without becoming bankrupt. The types of debtors who may be eligible for Division I Proposals are:

  • Insolvent corporations which owe any amount of unsecured debt
  • Insolvent individuals who owe more than $250,000 in debt (excluding the mortgage on their home)

A.C. Waring & Associates can assess your situation and explain which actions apply to your circumstances. A Division I Proposal may or may not be applicable to you. The trustee can discuss your options with you and get you the help you need to determine the right choice.

Benefits of Division I Proposals

When a Division I Proposal is filed, unsecured creditors listed in the proposal are legally required to stop all collection actions, including court actions. This is only a temporary measure, but upon creditor and court approval, your proposal will become your new arrangement unless you default on the terms of your proposal agreement.

For a Division I Proposal to be approved, all of the creditors included in your proposal must take a vote. The majority of these creditors must vote to accept the proposal, and the votes for acceptance must represent more than 66.6% of the debt you owe. The Court must also approve the proposal for it to become legally binding.

When the Division I Proposal is accepted and successful, you will benefit from:

  • Unsecured creditors covered in your proposal will stop legal collection action
  • You will not necessarily become bankrupt unless there is a default on your proposal commitment wherein your creditors can take action against you again
  • Your unsecured debts in your proposal will be paid off at a portion of their original amounts

Risks of Filing for Division I Proposal

If your unsecured creditors vote against your proposal, then you will go into immediate bankruptcy. Some corporations and individuals filing a Division I Proposal may be subject to audits or need more professional assistance regarding tax liability.

Consolidating Debt From Our Edmonton Regional Office

Division I Proposals are complex, so you need the help of an experienced team to explain the process and determine what you need to do. To learn more about Division I Proposals from our Edmonton office, contact A.C. Waring & Associates by calling 780-424-9944 or toll-free at 1-800-463-3328. We’ll help you find the best way to deal with your debt according to your financial circumstances.

Where To Find Us

Find us in the First Edmonton Place building on the corner of Jasper Avenue and 107th Street, behind the Corona LRT Station. Street meter parking is available along Jasper Avenue as well as 106th and 107th Streets, and paid surface parking is off of 106th Street, and underground parking for First Edmonton Place is off of 107th Street.

A.C. Waring &
Associates Inc.

  • First Edmonton Place
    410-10655 Jasper Ave NW
  • Edmonton, AB T5J 3S9

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