There are two types of proposals that can be filed under the Bankruptcy and Insolvency Act, a consumer proposal and a division 1 proposal. What determines which type of proposal you files is the amount of personal debt that you have. If your personal debts are less than $250,000 excluding the mortgage on their principal residence then you are eligible to file a consumer proposal. If you owe more than $250,000 excluding the mortgage on your principal residence then you cannot file a consumer proposal, you must file a division 1 proposal. Both types of proposals achieve essentially the same results. Both a consumer proposal and division 1 proposal eliminate interest charges, stop/prevent creditor action and compromise the total amount of debt.
-Chris Welker
