Business Debt Relief Program
How much you owe?
Find Out More About Business Debt Relief Program
Do you want to file a proposal for your corporation? Companies in Canada are allowed to file a Division 1 proposal. Unlike a consumer proposal which is filed when the total debt is lower than $250,000, there is no maximum limit on the amount that can be included when filing a Division 1 proposal. This proposal may allow the company to shed some of its debts, pay creditors reduced payments or make changes in the corporation’s affairs to make it more viable.
Get Help With Filing The Business Debt Relief Program
There are several steps to take when filing a commercial proposal. We can assist you in reviewing several steps that your organization needs to take in order to become viable. You should take a close look at your company’s sales and expenses, assess your debts and assets in order to come up with a financial solution that works best.
Benefits of filing a Business Debt Relief Program
With a Division 1 proposal, corporations can:
- Continue operating without interference from creditors
- Stop creditors from taking any legal action against the company
- Have their liabilities extinguished
- Have an extension of time to repay their debt
We will help you to go through your credit card statements and check the outstanding balances to know how much you owe. We will discuss every aspect of the settlement process and advise you if the terms you get from the creditors are very favorable. All your monthly expenses and income will be reviewed by our credit counselor. We will then work out a payment plan that you can afford and recommend other solutions that will easy your financial burden.
We only consider settlements that are fair for our clients and based on their current financial state. York Credit doesn’t make false promises. We always keep our word. Our goal is to ensure you save as much as you can by reducing or eliminating interests and fees. We even recommend a suitable legal professional if need be.
What proposal is right for you?
Filing a proposal is one thing but having a majority of creditors voting to accept it is another. For the Division 1 proposal to be accepted, 2/3 of the company’s creditors must accept it. Creditors participate in a meeting where they review the proposal and vote to either accept or deny it. Make sure your corporation’s financial situation is reviewd by professional when filing this proposal to ensure it has a high chance of being accepted by the creditors. If the proposal is not accepted by majority of debtors or if the company fails to meet with the stipulated guidelines in the proposal, the corporation is automatically declared bankrupt.
Division 1 proposals are under the Bankruptcy and Insolvency Act. This proposal involves a complicated process for corporations that are struggling with debt hence expert advice is very critical. At York Credit, we can help you to determine whether this proposal is right thing for you and your company and whether you should proceed with it or look at other options.