2014-03-17
A consolidation of debt is essentially a restructuring of a person’s existing outstanding debt by obtaining a loan from a financial institution or bank and paying off the existing debt and therefore creating for oneself a single payment with most likely a lower rate of interest. However, most banks or financial institutions require a solvent co-signer to secure the loan. The latter is probably the biggest obstacle in securing a consolidated loan.
A consumer proposal on the other hand is essentially an offer that is made to the creditors by using the BIA and the help of a Trustee. The amount that is being offered will depend on the amount of the debt and a person’s capacity to pay and respect the total terms of the proposal.
A proposal should be considered if a person cannot obtain a consolidation loan and is unable to pay his or her debts as they generally become due. The advantage of a consumer proposal is that the person has one single payment to make to the Trustee and that there is no interest accumulating on the debt.
2025-11-17
November 16-22, 2025 is National Addictions Awareness Week (NAAW) in Canada. Every year, organizations across the country observe this important week and do what they can to help those who may be struggling with addictions, while raising awareness and sharing information as to how family and friends can create support networks.
2025-11-13
Debt Solutions
Many may feel ashamed, embarrassed and completely overwhelmed about their debt. People experiencing debt-related stress often suffer from many associated health issues, such as sleepless nights, headaches, tension and more. And feeling out of control when it comes to managing their debt payments often prevents people from taking control of their financial situation. Not all debt results from overspending, living beyond one’s means, frivolous behavior or money mismanagement. To answer your questions about the stigma of debt, and to learn about the options available to you, tune into our Stigma of Debt VLOG series below with MNP's Licensed Insolvency Trustees.
2025-11-12
Bankruptcy Consumer Proposal
Summer fun doesn’t have to come with a hefty price tag.
