A Division I proposal is a settlement with creditors. It is available for individuals and businesses. There is no limit on how much money you owe. Usually the borrower (individual or business) will pay back between 10% and 90% of your debts, based on what they can afford to pay. A Licensed Insolvency Trustee (LIT) administers the Division I proposal – putting together a proposal and negotiating with creditors. If you do not follow through with the proposal, the LIT or creditor can apply to court to cancel the proposal and place you in bankruptcy. For more information on Division I proposals, see the Government of Canada’s website. Last Reviewed: October 2020