The process involved in filing a proposal to creditors:
If your debts are over $250,000 (excluding the mortgage on your principal residence) you could be eligible to file a Division I Proposal to your creditors.
Once a Division I Proposal is filed, we are required to call a meeting of creditors within 21 days from the date of the Proposal. We will prepare a report to your creditors that includes the causes of your financial situation and our recommendation with respect to supporting the terms of your Proposal.
Creditors can attend the meeting either in person or by proxy.
During the meeting, the creditors have the ability to ask questions and recommend changes to the terms of the Proposal.
Creditors can vote to either accept or reject the Proposal; should the Proposal be approved by the creditors, the Trustee is required to obtain Court approval.
If the Proposal is rejected, the debtor is immediately deemed bankrupt.