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What is Consumer Proposal

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In general, a Consumer Proposal is an appropriate form of debt negotiation and settlement in situations when:
  • consumer-proposalA person's debts does not exceed $250,000; excluding the debt of their principle residence.
  • The debtor has the ability to repay a portion of their debt over a period of time.
  • The debtor is looking for a bankruptcy alternative
Advantages of debt negotiation and settlement through a proposal:
  • Maximum length of the repayment period is 5 years;
  • If accepted by a majority of the dollar value owed (50% +1) it is deemed to be accepted and binding on ALL your creditors
  • Interest is frozen at the date you file;
  • You can negotiate to repay only a portion of the debt you owe;
  • Your creditors are "stayed" (restricted) from taking any legal action against you;
  • Wage garnishments (except for support and alimony) are immediately stopped.

Proposals to creditors were created to provide people with an alternative to bankruptcy. If you are in financial trouble and you have the ability to repay a portion of your debt, perhaps a consumer proposal is the right solution for you. Once you file a proposal, none of your unsecured creditors can garnish your wages or take you to court until the proposal has been dealt with. In fact, if your wages are being garnished and you file a proposal, the garnishment will stop.

In addition, when you file a consumer proposal, all of your unsecured debts are frozen and no more interest accumulates against them.

How does it work?

First, a consumer proposal administrator (a trustee) will help you summarize your financial situation and determine how much of a monthly payment you can afford to make. Then, they will compare that payment to the total amount of your unsecured debt to determine how many months you will be required to pay. If the numbers appear reasonable for both you and your creditors, the trustee will prepare the documents necessary to file a consumer proposal to creditors.Our dedicated personnel will provide you with support until the accepted consumer proposal has been fully paid. Upon completion of your payments, we will provide you with a CERTIFICATE OF FULL PERFORMANCE, the official release from the Superintendent of Bankruptcy.

Don't delay, contact us to learn which financial solution is right for you!