Although most non-profit corporations are set up with the best intentions, sometimes they need to be reorganized or closed altogether when debts accumulate to the point where creditors are calling or threatening legal action.
If this is happening to your non-profit corporation, talk to Charles Advisory Services for a debt management strategy that best suits your current financial situation.
Reorganizing and Filing Division 1 Proposals for Non-Profits
If you’re encumbered by corporate debt but still want to keep your non-profit corporation operating, filing a Division 1 proposal is a solution that will allow you to reorganize while letting us manage your debt situation with your creditors.
A Division 1 proposal is a formal legal proceeding that is governed by the Bankruptcy and Insolvency Act of Canada. Its purpose is to help businesses, including non-profits, negotiate affordable repayment of their debts to avoid filing for bankruptcy.
As a licensed insolvency trustee, Robert Charles and his team can file a Division 1 proposal on your behalf, letting you get back to reorganizing your non-profit corporation. Learn more about filing a Division 1 proposal.
Insolvency for Non-Profit Corporations
There are many reasons why closing a non-profit corporation may be the only solution:
Your Division 1 proposal was rejected
Your Division 1 proposal was accepted, but you didn’t meet your repayment obligations under the proposal
The non-profit has ceased raising funds due to internal reasons or there is no longer a need
The board votes to voluntarily close the non-profit corporation and move on to other endeavours
Insolvency for non-profit corporations involves a complex set of steps and procedures. Charles Advisory Services can manage the entire process for you, and take care of all the necessary paperwork, communications, and liquidations while you concentrate on your future.
As a licensed insolvency trustee, Robert Charles and his team understand the rules and guidelines set under the Bankruptcy and Insolvency Act of Canada. We’ll use these guidelines fairly and in a manner that protects your rights, making sure that every provision is explained to you. The insolvency process for non-profit corporations is similar to that of for-profit corporations, and Charles Advisory Services is well versed in the different aspects of each procedure. Learn more about corporate debt.
Division 1 and Insolvency Services for Non-Profit Corporations in Toronto
If it’s time to reorganize or close your non-profit corporation, let Charles Advisory Services manage the process in a way that benefits you the most. Our team will take care of all the paperwork, negotiate with creditors, and protect eligible assets, making the experience as stress-free as possible for you.
Since 2006, Charles Advisory Services has provided Division 1, corporate debt restructuring, and corporate insolvency services to businesses in Toronto. Founder and Licensed Insolvency Trustee Robert Charles has helped hundreds of individuals, families, and businesses manage their debt situation with the personal service that only an independent licensed insolvency trustee can give. With Charles Advisory Services, trusted corporate debt solutions are just a phone call away.
If your non-profit corporation is in financial trouble and you need to explore your options, contact Charles Advisory Services today for a free consultation!