Division One Proposal
If I have an asset(the only one I have)worth approximately 25% of total unsecured debt and virtually no income(self employed sales)could I go to a trustee to file a Division 1 Proposal (my unsecured debt is over $75,000)and pay it in one lump sum by selling the asset? If so, what do you think the chances creditors may accept?
The plan you are suggesting may very well work. When you sit down with your trustee they will do a calculation of just what a bankrutpcy is likely to be worth to your creditors. If the lumpsum proposal that you are suggesting results in at least as much money as the bankruptcy then it may be acceptable to your creditors.
You’ve got the right idea – the next step will be to contact a trustee and determine if your offer will be generous enough to get accepted.