Proposal

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 $75,000.  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.