For three years after your final payment, a note will appear on your credit report indicating that you entered into an arrangement to settle your debts. This may make it more difficult to secure new loans, credit cards, and other forms of financing. It may cause lenders to require a co-signer to issue new debt or mean you will be charged higher interest rates if you do get approved. As part of the Consumer Proposal, you are required to attend two...

A Consumer Proposal can be an excellent option to eliminate your unsecured debt while protecting certain assets you may otherwise have to give up in a Bankruptcy. It will not impact your secured creditors, and you can generally choose which property to keep and which (if any) to sell to fund your Consumer Proposal. Home (or other real property) Vehicles Personal possessions Investments and savings Tax returns and government...

If you are insolvent, you may be able to file a Consumer Proposal. However, in order to file a Consumer Proposal your total debts, excluding the mortgage on your principal residence, must not exceed $250,000 as outlined by the Bankruptcy and Insolvency Act. For more details, visit our Are You Eligible for a Consumer Proposal page.

A Consumer Proposal allows you to make arrangements to pay all, or part, of your unsecured debt in monthly payments over a specified period of time. It also allows you to change the payment arrangement with your creditors by extending the timeframe, eliminating the interest or reducing the total amount to be paid.

The federal government provides guidelines to Licensed Insolvency Trustees that enables them to calculate your surplus income. That amount depends on the number of members in your family and your total family income. If you do not have surplus income under these guidelines, it is unlikely you will be able to submit a proposal that your creditors will approve.

When you file a proposal, unsecured creditors deal directly with your Licensed Insolvency Trustee. Unsecured creditors must stop contacting you directly. If an unsecured creditor persists in contacting you, notify your Licensed Insolvency Trustee immediately.

A consumer proposal cannot last more than five years, but the exact length depends on the type of proposal you submit. Your credit rating reflects this for three years after your final payment.

Voluntary deposits are designed for debtors who reside in Quebec to make regular, monthly payments to the Court based on their income and dependents. The Court then ensures that these payments are distributed to creditors. This arrangement lasts until 100% of your debts are paid in full, along with a 5% interest per year. The voluntary deposit protects the debtor against salary garnishments and seizure of furniture found in the residence. It does...

No, filing a Consumer Proposal will have no affect on your job. Section 66.36 of the Bankruptcy and Insolvency Act states that, “No employer shall dismiss, suspend, lay off or otherwise discipline a consumer debtor on the sole ground that a consumer proposal has been filed in respect of a consumer debtor.”