Consumer Proposals

What is a Consumer Proposal?

Consumer Proposals are the number one alternative to personal bankruptcy in Canada. A Consumer Proposal allows you to settle your debts for less than you owe by making a “deal” with your creditors and consolidating your debts into one manageable amount.

Click below to watch our video for a 1-minute overview of Consumer Proposals:

Consumer Proposals allow you to make a legal arrangement, or debt settlement, with your creditors to have you pay only a portion of your debts to settle them in full.

This powerful tool has steadily gained in popularity in recent years and because Consumer Proposals provide automatic protection from your creditors and a freeze on any additional interest, they have many benefits compared to other debt consolidation options.

A Consumer Proposal provides a means to paying off debt and can be a successful debt management option for you without resorting to personal bankruptcy.

The first step in the Consumer Proposal process is to Contact Us for a free, confidential evaluation of your financial options.

Debt Settlement

Consumer Proposals are sometimes referred to as “Debt Settlement Proposals” – it’s important to know that a debt settlement offer that is legally binding on your creditors and provides you with the full transparent advantages of a Consumer Proposal can only be filed by a Licensed Insolvency Trustee (formerly known as a Trustee in Bankruptcy). Filing a Consumer Proposal has significant advantages compared to traditional debt consolidation or credit counselling programs.

A Consumer Proposal can be made by a person who owes between $1,000 and $250,000 of debt, not inclusive of mortgages on a personal residence. If the person’s debts are more than $250,000, they may still be able to file a Proposal, but some different rules will apply.

Virtually all types of debts can be extinguished using a Consumer Proposal, including debt for government monies owed to Canada Revenue Agency and student loans.

To find out if a Consumer Proposal is a debt settlement option that makes sense for you, meet with a Licensed Insolvency Trustee for a free, confidential consultation.

Cut your debt by up to 80%, with no added interest or fees by filing a Consumer Proposal.

Some real-life examples of successful Consumer Proposal scenarios:

1. A person with debts of over $41,000 structured a Consumer Proposal whereby all debts will be settled in full via total monthly payments of $350 for a period of 60 months.

• Debts cut by close to 50%!

2. Another individual successfully consolidated their debts of approximately $55,000 using a Consumer Proposal, with monthly payments of $650 over a 36-month term.

• Debts cut by nearly 60%!

3. Yet another person used a Consumer Proposal to reduce their $9,000 debt down to a total monthly payment of $200, paid over 24 months.

• Debts cut by almost 55%!

4. A self-employed individual with total debts owing of $43,000 (including tax debt) filed a Consumer Proposal to consolidate their debt repayment down to a total monthly payment of $230 for 60 months.

• Debts cut by nearly 70%!

Consumer Proposal questions? Contact Us to learn more.

Learn more about how the Consumer Proposal process can help you become debt-free. Book a free, confidential consultation.