Proposal: Canada Debt .ca defines Proposal

Bankruptcy Term Proposal

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Canada Debt has the definition to the bankruptcy and debt term Proposal. Finding answers to terms such as Proposal can be difficult, especially if there is more than one definition which is why we have created a page dedicated to financial terms dealing exclusively with debt. Proposal in financial terms means...

In debt and bankruptcy terms, the phrase / term 'Proposal' is used as follows:

Under the Bankruptcy and Insolvency Act there are two types of proposals that can be made. A proposal filed under Division I, which is applicable to companies and any individual who wants to avail himself of it. There are also consumer proposals, which are a special type of proposal that a consumer can avail himself of but only if his debts, excluding mortgages on real property, do not exceed $150,000. One of the main features of a consumer proposal is that if the creditors do not accept the proposal, the person is not automatically bankrupt as in a Division I proposal.