Karl Was Diagnosed with Cancer and Had to Quit Work

Karl was diagnosed with cancer and had to quit work because he was very sick. Debts began to grow and Karl now owes $100,000 to the bank and credit card companies, plus $12,000 in unpaid child support payments, plus he still owes $80,000 on the mortgage on his condominium. Karl is hoping to avoid going bankrupt. Which of the following should Karl do at this stage?

A) file a Division 1 Proposal
B) file a Division 2 Proposal
C) file a CCAA proposal
D) pay his mortgage but default on his other debts
E) he should declare bankruptcy and all his debts would be erased and he can still keep his condo