At Charles Advisory Services we understand how much time and money you have invested in your business. That means you want to explore all options before having to declare bankruptcy. We recommend a Division 1 proposal as the perfect solution for businesses who are facing legal action from creditors. A Division 1 proposal helps assuage the demands of your creditors while keeping your business fully operational. You can pay off debt to keep creditors happy, while you focus on rebuilding your business and becoming profitable.
If your business is so deep in debt your creditors are threatening legal action, everything you’ve worked so hard to achieve can be lost. When corporations, limited partnerships, or independent businesses become encumbered by debt a Division 1 Proposal offers the best solution to keep you from losing your business. We can prepare a Division 1 proposal to negotiate affordable repayments with your creditors while keeping your business afloat. We will help you get back on track with manageable repayment plans that allow you to keep your business operational and get back on the road to success.
Once the Division 1 proposal is filed it will stop unwanted contact from your creditors and payments will not be required until an agreement has been reached. This will also put an end to any legal action that has been taken against you by your creditors.
Once we have presented your proposal, your creditors will consider the conditions and a vote is taken collectively by all creditors involved. To be approved, at least 66.6% in dollars and 50% plus one in number of eligible creditors must vote in favour of your proposal.
Unfortunately, if the creditors reject the proposal your business is immediately placed into bankruptcy. However, this is still your best option as we will work to ensure your creditors understand they will receive more money under your proposal, than they would should you declare bankruptcy. Once accepted the terms are binding and we will work with you to ensure payments are made to avoid bankruptcy in the future.
A Division 1 Proposal allows you to avoid bankruptcy and continue to meet your business goals. We will work with you to end legal action and come up with a repayment plan that allows you to maintain your assets and continue to grow your profits. Our team will work hard to get the best possible agreement to lessen your debt and improve cash flow. Give us a call to set up your appointment at (416) 915-9007 or contact us here.
A division I proposal allows individuals or corporations to resolve their financial issues without declaring bankruptcy. Since bankruptcy is undesirable and carries various consequences, many people or businesses want to avoid it.
A division I proposal allows individuals or corporations to resolve their financial issues without declaring bankruptcy. Since bankruptcy is undesirable and carries various consequences, like ruining future job prospects, many people or businesses want to avoid it.
A Division I proposal is a formal legal procedure for individuals and businesses to restructure debts within the Bankruptcy and Insolvency Act.
Proposals can be a complicated process; hiring a Licensed Insolvency Trustee is the key to success. They ensure that your proposal is put together as efficiently as possible. That way, you can get the most out of it.
Proposals are more beneficial than bankruptcy because they let you keep more of your assets. They also don’t impact your credit score as much and only stay on your record for three years instead of six for first-time bankruptcy.
Charles Advisory Services Inc.200 Evans Ave Unit 8
Etobicoke, ON
M8Z 1J7
Monday – Friday, 8:00 AM – 5:00 PM
