Consumer proposal
An interesting alternative to personal bankruptcy!
A consumer proposal is essentially an agreement reached with your creditors. It allows you to pay off some of your debts in interest-free monthly installments over a maximum of five years.
When should you consider a consumer proposal?
A consumer proposal may be considered in the following situations:
- You have between $1,000 and $250,000 in debt (excluding your primary residence mortgage);
- You’re able to pay back a portion of your debt;
- You’re no longer able to meet your financial obligations as they fall due;
- You have more debts than available assets;
- You’d like to avoid bankruptcy and find an alternative to settle your debts.
What is the process for a consumer proposal?
A consumer proposal includes the following steps:
- Filing a proposal : Our Licensed Insolvency Trustee defines a repayment plan based on your financial capacity. They also submit all the documentation to the Office of the Superintendent of Bankruptcy. After that, they’ll communicate with your creditors. You won’t have to deal with unpleasant calls, emails and letters! You can breathe a sigh of relief.
- Notice to creditors : Your creditors will be notified regarding your consumer proposal.
- Proposal acceptance or meeting request : Creditors must accept the consumer proposal or request a meeting within 45 days. If a meeting is requested, it’ll allow your trustee to negotiate an acceptable agreement. If no meeting is requested, your proposal is automatically accepted.
- Two meetings with your counsellor : You must meet with your counsellor twice during the process. These sessions will help you assess your financial situation and, more importantly, also learn to better manage your budget to avoid falling into debt again.
- Free yourself from debt : Once you’ve made all the required payments, you’ll be discharged from your debts. Then you can start over!
What are the advantages of a consumer proposal?
A consumer proposal has the following advantages:
- You make lower monthly payments over a period of up to five years;
- You repay only a portion of your debts;
- You’ll no longer be harassed by your creditors;
- You’ll be protected from salary seizure and legal proceedings from your creditors;
- You retain all your assets;
- You’ll improve your credit rating faster!
How can a Licensed Insolvency Trustee help you with a consumer proposal?
Under the Bankruptcy and Insolvency Act, only a Licensed Insolvency Trustee is authorized to submit a consumer proposal. They negotiate with your creditors on your behalf to reduce the amount of your debts.
Our trustees have in-depth knowledge of the consumer proposal process. We’ll be at your side every step of the way.
Other solutions that can help
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Voluntary deposit
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