diff --git a/js/models/core/BuilderMockV0.js b/js/models/core/BuilderMockV0.js
new file mode 100644
index 000000000..be3926d10
--- /dev/null
+++ b/js/models/core/BuilderMockV0.js
@@ -0,0 +1,26 @@
+'use strict';
+
+
+var bitcore = require('bitcore');
+var Transaction = bitcore.Transaction;
+
+function BuilderMockV0 (data) {
+  this.vanilla = data;
+  this.tx = new Transaction();
+  this.tx.parse(new Buffer(data.tx, 'hex'));
+};
+
+BuilderMockV0.prototype.build = function() {
+  return this.tx;
+}; 
+
+
+BuilderMockV0.prototype.getSelectedUnspent = function() {
+  return [];
+};
+
+BuilderMockV0.prototype.toObj = function() {
+  return this.vanilla;
+};
+
+module.exports = BuilderMockV0;
diff --git a/js/models/core/TxProposal.js b/js/models/core/TxProposal.js
index cb5c4987b..943c3e97a 100644
--- a/js/models/core/TxProposal.js
+++ b/js/models/core/TxProposal.js
@@ -4,6 +4,7 @@ var bitcore = require('bitcore');
 var _ = require('underscore');
 var util = bitcore.util;
 var Transaction = bitcore.Transaction;
+var BuilderMockV0 = require('./BuilderMockV0');;
 var TransactionBuilder = bitcore.TransactionBuilder;
 var Script = bitcore.Script;
 var Key = bitcore.Key;
@@ -147,7 +148,12 @@ TxProposal.fromObj = function(o, forceOpts) {
   try {
     o.builder = TransactionBuilder.fromObj(o.builderObj);
   } catch (e) {
-    throw new Error("Invalid or Incompatible Backup Detected.");
+
+    // backwards (V0) compatatibility fix.
+    if (!o.version) {
+      o.builder = new BuilderMockV0(o.builderObj);
+      o.readonly = 1;
+    };
   }
   return new TxProposal(o);
 };
diff --git a/js/models/core/TxProposals.js b/js/models/core/TxProposals.js
index c5ecd49f0..44f1f9bb7 100644
--- a/js/models/core/TxProposals.js
+++ b/js/models/core/TxProposals.js
@@ -1,9 +1,11 @@
 'use strict';
 
+var BuilderMockV0 = require('./BuilderMockV0');;
 var bitcore = require('bitcore');
 var util = bitcore.util;
 var Transaction = bitcore.Transaction;
-var TxProposal = require('./TxProposal');
+var BuilderMockV0 = require('./BuilderMockV0');;
+var TxProposal = require('./TxProposal');;
 var Script = bitcore.Script;
 var Key = bitcore.Key;
 var buffertools = bitcore.buffertools;
diff --git a/test/test.TxProposal.js b/test/test.TxProposal.js
index 1371e44f4..78dff1541 100644
--- a/test/test.TxProposal.js
+++ b/test/test.TxProposal.js
@@ -120,7 +120,7 @@ describe('TxProposal', function() {
           builderObj: b.toObj(),
           inputChainPaths: ['m/1'],
         });
-      }).should.throw('Invalid or Incompatible Backup Detected');
+      }).should.throw('Invalid');
     });
     it('sets force opts', function() {
       var b = new FakeBuilder();
@@ -134,7 +134,7 @@ describe('TxProposal', function() {
       };
       (function() {
         txp = TxProposal.fromObj(o,{pepe:100});
-      }).should.throw('Invalid or Incompatible Backup Detected');
+      }).should.throw('Invalid tx proposal: no ins');
       o.builderObj.opts.should.deep.equal({juan:1, pepe:100, feeSat:undefined, fee:undefined});
     });
   });
diff --git a/test/test.WalletFactory.js b/test/test.WalletFactory.js
index 058f91c9b..b79bdcd5c 100644
--- a/test/test.WalletFactory.js
+++ b/test/test.WalletFactory.js
@@ -432,13 +432,16 @@ describe('WalletFactory model', function() {
       wf.network.start.getCall(0).args[0].privkey.length.should.equal(64); //privkey is hex of private key buffer
     });
   });
-  describe('break backwards compatibility with older versions', function() {
-    it('should\'nt be able to import unencrypted legacy wallet TxProposal: v0', function() {
+  describe('dont break backwards compatibility of wallets', function() {
+    it('should be able to import unencrypted legacy wallet TxProposal: v0', function() {
+      var wf = new WalletFactory(config, '0.0.5');
+      var w = wf.fromObj(JSON.parse(legacyO));
 
-      (function() {
-        var wf = new WalletFactory(config, '0.0.5');
-        var w = wf.fromObj(JSON.parse(legacyO));
-      }).should.throw('Invalid or Incompatible Backup Detected');
+      should.exist(w);
+      w.id.should.equal('55d4bd062d32f90a');
+      should.exist(w.publicKeyRing.getCopayerId);
+      should.exist(w.txProposals.toObj());
+      should.exist(w.privateKey.toObj());
     });
 
     it('should be able to import simple 1-of-1 encrypted legacy testnet wallet', function(done) {