Proposal
File a proposal in Gatineau, Ottawa and our other offices
The proposal is a procedure that can be requested by any insolvent person, i.e. a natural person or a legal person (corporation). The proposal is made to the general creditors' estate. Such a proposal is constituted only if the outstanding debt is commercial by nature, or if it is a cumulative personal debt exceeding $250,000. Our consultants will assist you with your proposal in Gatineau, Ottawa, Val-d'Or or in another of our 15 agencies.
Role of the proposal
The proposal is used to:
- Keep a business running to avoid bankruptcy and closure of operations
- Maintain jobs
- Preserve profitable divisions and close the ones with a deficit
- Restructure operations to make them viable
- Hold the assets and make a settlement on unsecured debt
In addition, a corporation may benefit from the protection provided by the Bankruptcy and Insolvency Act by filing a notice of intention, which allows for a stay of proceedings until the proposal is filed. This procedure provides a reasonable period of time to implement a structural reorganization or to obtain new financing to ensure business continuity.
What does the proposal consist of?
The proposal may provide for:
- Periodic payments
- A procedure for the sale of certain assets
- A procedure for selling the company in operation
The proposal must be accepted by a required majority of creditors prescribed by law and be approved by the court.
Contact us to prepare your file. We can also assist you in your company's day-to-day accounting to prevent financial problems.
