consumer proposal vs bankruptcy, debt +$250,000
December 16th, 2015 by Questions
I have two questions: 1] I understand that a consumer proposal is only available if the debt is $250,000 or less? What is available if debt exceeds $250,000? 2] If the majority of creditors do not accept the consumer proposal, is the debtor forced into bankruptcy or are there any other options?
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December 16, 2015 at 3:44 pm, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:
If you do not meet the requirements to file a Consumer Proposal, or Division Two proposal, you may be eligible to file a Division One proposal under the Act. A meeting with a trustee in your area will examine your debts as well as your assets in order to help determine the best option for you with regard to your financial situation. In the event that a Division One proposal is not accepted by 2/3 of the dollar value of the claims and a majority of the creditors you will be deemed to have filed an Assignment in bankruptcy. This differs from a consumer proposal.