PROPOSALS TO CREDITORS

A Proposal to Creditors is a legal process that allows you to restructure the terms of your debt or settle your debt for a lower amount. In some cases, a proposal allows you to keep assets your creditors might otherwise be able to seize.

Proposals to Creditors come in two forms:

Consumer Proposal: A Consumer Proposal is available to individuals whose total debts are less than or equal to $250,000. Any mortgages or debt registered against your principal residence are not included when calculating the $250,000. For example, if you have debts of $100,000 plus a mortgage on your home of $200,000, you would still qualify to make a Consumer Proposal... The payment period in a Consumer Proposal cannot extend beyond five years.

Division I Proposal: This type of Proposal can be used by individuals or businesses with debts of more than $250,000. No limit exists on the amount of debt or the repayment period.

For more information, download our Proposals to Creditors FAQs and contact an MNP bankruptcy trustee.