Contact a Trustee

The first step in the process is to contact one of our professionals for a free, confidential, no-obligation consultation. This number will reach Sands & Associates, toll-free: 1-800-661-3030.

We will review your financial situation and assist you in preparing the Consumer Proposal. We will prepare the necessary documents to file the Consumer Proposal with the Office of the Superintendent of Bankruptcy.

Creditor Notification

The Trustee will notify all of the individual’s creditors and provide them with a copy of the Consumer Proposal and other relevant financial information. Once creditors receive notification that the proposal has been filed, they are prohibited from taking any further collection actions.  They will also receive a Report of the Trustee, which comments on the individual’s ability to meet the terms of the Consumer Proposal and provides a comparison of realization to creditors in the Consumer Proposal versus a bankruptcy.


The creditors have up to 45 days to consider whether to accept or reject the Consumer Proposal. If creditors do not respond, the Consumer Proposal is deemed to be accepted. However, creditors have been taking a more active role in the Consumer Proposal process because the return to them is higher than a bankruptcy, and usually vote on the Consumer Proposal by letter.

To be accepted by creditors, there must be at least a 50% majority in dollar value voting to accept the Consumer Proposal. Acceptance of the Consumer Proposal by those creditors who vote will be binding on the debtor and the remaining creditors who did not vote.

The creditors may request a meeting be held, although this is not a common occurrence. Any creditor who votes against the Consumer Proposal is deemed to be requesting a meeting be held, but in order to actually have a meeting, that creditor’s claim must represent at least 25% in value of all proven claims filed at the end of the 45 day period.

When the Consumer Proposal is accepted by the creditors, it is deemed approved by the Court after 15 days have expired.


An individual who files a Consumer Proposal is required to attend two financial counselling sessions. These sessions will focus on helping the debtor understand the causes of his or her financial difficulties, as well as assisting the debtor in managing their future financial affairs.


On acceptance by the creditors and approval by the Court, the debtor will make the payments directly to the Trustee as set out in the Consumer Proposal document. If payments are required monthly, and a debtor misses any three payments, the Consumer Proposal is deemed to be in default. In the case where payments are not required on a monthly basis, the Consumer Proposal will be in default if more than three months go by without the debtor making the required payment.


Once all payments under the Consumer Proposal are made, the Trustee will issue a Certificate attesting to the completion of the Consumer Proposal.