Like a Consumer Proposal, this is a formal procedure overseen by the Licensed Insolvency Trustee (LIT) under the Bankruptcy and Insolvency Act (the BIA). This type of Proposal is available to businesses and individuals — there is no limit with respect to how much money is owed. As with a Consumer Proposal, in a Division I proposal, you work with a Licensed Insolvency Trustee to construct a fair offer to pay your creditors a percentage of what you owe them, payable over a specific timeframe. And just like a Consumer Proposal, all payments are made through the Insolvency Trustee, and the Trustee holds those funds in trust as they accrue and then uses them to pay each of your creditors.