Can a Business Proposal (Division I Proposal) Save My Business?
A Business proposal is also known as a Division I Proposal under the Bankruptcy and Insolvency Act.
If you are struggling with your business obligations such as payroll, GST payments and employee source deductions you might want to speak with a Trustee about making a business proposal.
A business proposal is a method to restructure your business debts.
The terms of the proposal will be binding to all creditors if the proposal is accepted.
A proposal will be accepted if the creditors vote to accept the proposal.
The Companies Creditors Arrangement Act is also available to businesses facing financial difficulty.
If you are considering using personal net worth to service your business debt, you should speak with an experienced and licensed Proposal Administrator.
Our team of Administrators will assist you with reviewing your business finances and the options available.
What is a Business Proposal?
Business proposals are an effective tool for eliminating business debt and saving a business. In order to make a business proposal (a Division I Proposal) you need to use a Licensed Insolvency Trustee.
- A proposal can only be filed through a Trustee.
- The proposal is a legal and binding agreement with a company’s creditors.
Your Trustee will work with the business owners to draft a proposal.
The terms of the proposal will be a “win-win” for the business and the creditors the company owes money.
A proposal is almost always accepted by the creditors as it will be structured in a win-win way. The business wins because it can continue operations and paying its employees. The creditors win because they receive more than they would if the company went bankrupt and they retain a customer.