|Debts must be less than $250,000
||Debts must be more than $250,000
|Only individuals can file a consumer proposal
||Individuals, a bankrupt, or a trustee of the estate of a deceased bankrupt can file a Division 1 proposal
||The Trustee must include a projected cash flow statement of the insolvent with this Proposal
|Creditors have 45 days to vote for or against the proposal.
||A mandatory Meeting of Creditors must be held within 21 days of filing the proposal. The creditors will then vote for or against at this meeting.
|If the Proposal is rejected, the debtor may opt to file a Bankruptcy or attempt to settle with the creditors directly in an informal manner.
||If the Proposal is rejected at the Meeting of Creditors, the debtor is automatically bankrupt.
|2 mandatory counselling sessions must be attended during the Consumer Proposal (the first within 60 days, the second within 210 days)
||counselling sessions not required in a Division 1 Proposal
|Proposal can be 1-5 years. Paying down the proposal earlier is recommended and welcomed.
||A Division 1 Proposal is normally a five-year process but the length can differ. Paying down the proposal earlier is recommended and welcomed.
|If three payments are missed then the Consumer Proposal is considered “annulled” , the protection is immediately lifted and the creditors have the legal right to pursue the amounts owing to them.
||In a Division 1 Proposal, if in default the protection is lifted and creditors have the legal right to pursue amounts owing to them.