How Do Consumer Proposals Work?
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.
Compare key debt help services!

CONSUMER PROPOSAL VS
CREDIT COUNSELLING
CONSUMER PROPOSAL VS
CREDIT COUNSELLING
What’s the difference between Consumer Proposal and traditional credit counselling?
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BANKRUPTCY VS
CONSUMER PROPOSAL
BANKRUPTCY VS
CONSUMER PROPOSAL
What are the Consumer Proposal pros and cons compared to bankruptcy?

BANKRUPTCY VS
CREDIT COUNSELLING
BANKRUPTCY VS
CREDIT COUNSELLING
What are some advantages of bankruptcy over non-profit credit counselling?
Learn MoreLooking for something specific? Check our FAQs sections for commonly asked questions about Consumer Proposals, Personal Bankruptcy, and Debt Help in BC.
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 debt 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.
Filing a Consumer Proposal in BC: Step-by-Step
(+) Expand allMeet with a Sands & Associates representative for a free consultation.
We file your Consumer Proposal and administer the voting process.
You fulfill the terms of your Consumer Proposal, as accepted by your creditors.
Your Consumer Proposal is complete, achieving full and final settlement of your debts.
Learn more about how the Consumer Proposal process can help you become debt-free. Book your free confidential debt consultation today.