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Getting You Back on Track
The team of Licensed Insolvency Trustees at Risman Zysman strive to help struggling businesses continue to operate by filing a corporate proposal (also known as a Division 1 proposal). This option can help the company avoid bankruptcy. With the support of our Licensed Insolvency Trustees, companies filing a Division 1 proposal are given the opportunity to restructure their operations.
Division 1 is a section of the Bankruptcy and Insolvency Act. It allows for two types of debtors to access debt relief without filing for bankruptcy: (1) insolvent businesses owing unsecured debt, and (2) insolvent individuals owing over $250,000 in debt, excluding the mortgage on their home. Our team at Risman Zysman can help you determine if filing a Division 1 proposal is the best course of action for your business.
Key Advantages
A key advantage of filing a Division 1 proposal is that unsecured creditors must immediately cease all collection actions against the business, including legal action. Our clients have peace of mind knowing that if their proposal is accepted and regular payments are made to their creditors, they can keep their assets. Another key benefit of a Division 1 proposal is that debts are paid off at a portion of their original amounts. With the guidance of the Licensed Insolvency Trustees at Risman Zysman you can avoid bankruptcy and regain your businesses’ financial security.