Consumer Proposal

Consumer proposal benefits

A consumer proposal can benefit both you and your creditors

The reason we are seeing more consumer proposals filed in Canada is that they are a more agreeable solution for both parties: the debtor and the creditor. If you choose to file a consumer proposal, you will only have to repay a portion of the debt you owe, and you will not have to give up any of your possessions. Creditors will usually accept a consumer proposal since this solution allows them to recover a greater portion of the debt owed than other debt relief options, such as bankruptcy.

A consumer proposal will: 

  • stop all interest charges from the date the proposal is filed;
  • allow you to negotiate to repay just a portion of your debt;
  • let you repay your debts in equal monthly payments over a period of three to five years;
  • stop all wage garnishments and harassing phone calls from creditors;
  • resolve unsecured debts such as credit cards, lines of credit, payday loans and tax debt owed;
  • allow you to keep all of your assets including your car and your home;
  • add no additional costs or fees beyond your regular monthly proposal payments.

How the consumer proposal process works

When you schedule a meeting with a Licensed Insolvency Trustee (LIT), they will explain every debt relief solution available to you. If you decide that a consumer proposal is the best option for your situation, an LIT will negotiate with your creditors and file the proposal on your behalf. They will also be able to explain every step of the process and answer any questions you might have.

Learn more about how to file a consumer proposal.

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