If you have filed a division 1 proposal and you are struggling with your payments you should contact the trustee as soon as possible to discuss your options. If you miss a division 1 proposal payment you are required to catch-up the missed payment within 30 days. If you fail to catch-up your missed payment within the time available your division 1 proposal is in jeopardy of being annulled. Unlike a consumer proposal which can be automatically deemed annulled a division 1 proposal can only be annulled by a court order. This means that if you miss a payment and do not remedy the default within the 30 days it would be possible for your trustee or a creditor to apply to court to have your division 1 proposal annulled. If your division 1 proposal is annulled by a court order you are deemed to have made an assignment in bankruptcy.
-Chris Welker
