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Consumer Proposal

We understand why you’re worried. You have debt, but you may also have assets you wish to keep and the idea of filing for bankruptcy is terrifying. You’re thinking about long-term financial impacts and wondering how to avoid them. If this sounds like you, a Consumer Proposal may be just the Life-Changing Debt Solution you’re looking for.

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Consumer Proposals 101: An Introduction

When it comes to navigating through debt, it’s all about understanding your options. To learn more, download our newest e-book free:

Consumer Proposals 101 - An Introduction

How Consumer Proposals Work

In a Consumer Proposal we will work together to develop a formal offer to your creditors to settle your unsecured debt . The offer might involve monthly payments over time, cashing in RRSPs to fund a proposal or offering a lump sum to be borrowed from family members, just to name a few possible options; it’s designed to be a very flexible process. Your creditors may be willing to settle for less than the full amount owed and you will avoid filing for bankruptcy.

Is a Consumer Proposal the Right Choice For You?

A Consumer Proposal may be the right choice if you:

  • Owe unsecured debt which totals less than $250,000 (Note: other options exist if you owe more than this)
  • Need more time or a realistic plan to pay back your debts
  • Want relief from accumulating interest and wage garnishments
  • Want to keep assets that might be taken away in a bankruptcy

What to Expect When Filing a Consumer Proposal

By filing a Consumer Proposal, you’ll hold onto your assets, freeze or eliminate interest, stop wage garnishments and end harassing or threatening phone calls from creditors. As long as you make the payments you’ve agreed to make, you’ll be on track to rebuild your credit and be debt-free for good.

Licensed Insolvency Trustee holding up a piece of paper and advising a person on bankruptcy options.

Consumer Proposal vs Bankruptcy

Consumer Proposals and Bankruptcies are both government legislated options which can provide you with relief from significant debt problems. In addition, both debt solutions can only be administered by a Licensed Insolvency Trustee and provide a legal stay of proceedings which require creditors to discontinue harassing collection calls, garnishment or other legal proceedings.

Determining which, if either, option is an appropriate solution in your own unique situation depends on a number of variables. Let’s explore the advantages and disadvantages of both a Consumer Proposal and a Bankruptcy.

Compare Your Options

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