| Author: |
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T. Peter |
| Date: |
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August 9, 2001 |
| Question: |
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What is a Division I proposal? My husband and I filed bankruptcy in 1998. We know that we can't file again for 10 years. We have found ourselves in financial hardship again, due to our 7 year old daughter being diagnosed with diabetes. Medical bills and her medical needs, food, insulin, needles, etc. We have a few bad checks that we owe, which we wrote in order to get her food or supplies. Do we have any other options?
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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August 10, 2001 |
| Answer: |
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A Division 1 proposal is one of 2 types of proposals where you offer,
through a Trustee, to settle with your creditors without having to do a
second bankruptcy. In a proposal, creditors usually receive less than
100% of their debts, but more than they would receive in a bankruptcy.
The terms of the proposal depend on you, the debts, your budget and your
family situation.
If you were bankrupt in 1998 you could file again in 2001 (there is no
10 year limitation), but it becomes more difficult to be discharged the
second time. Subsequent bankruptcies also stay on your credit record for
14 years.
You may also be a candidate for Orderly Payment of Debt, a program
administered by Credit Counselling Services of Alberta that allows you
up to 4 years to pay everyone in full. Their toll-free number in Alberta
is 1-888-294-0076, or check their website at www.creditcounselling.com.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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