A Consumer Proposal is a formal agreement between you and your creditors that allows you to settle your debts for less than what you owe, while protecting your assets such as your home and vehicles.
It is administered by a Licensed Insolvency Trustee and is one of the most common alternatives in Canada to avoid bankruptcy.
Unlike debt consolidation loans that require good credit, a Consumer Proposal is available to anyone who qualifies, regardless of credit score. You make one affordable monthly payment, and we handle all communication with your creditors.
The moment your proposal is filed, collection calls stop, wage garnishments are halted, and you’re protected from further legal action by your creditors.
A Consumer Proposal impacts your credit report, but the impact is not permanent. When the proposal is filed, it is recorded as an R7 rating, which indicates that you are repaying your debts through a negotiated plan.
This rating remains on your credit report for three years after you complete the proposal or six years from the filing date, whichever comes first. Once completed, your report will show that the debts were settled or paid as agreed under the proposal.
The total cost depends on your financial situation and what your creditors agree to accept. In many cases, clients repay between 20% and 70% of their unsecured debt, with no interest added once the proposal is in place.
One of the key advantages is transparency, there are no upfront fees or hidden charges. The Licensed Insolvency Trustee’s fees are regulated by federal law and are already included in your monthly payment, so you always know exactly what you’re paying.
Payments can be spread over up to five years (60 months) to keep them manageable. The amount is determined by factors such as:
Because interest stops accruing, the amount agreed upon is the total amount you repay.
(These examples are illustrative only; actual payments depend on individual circumstances.)
These debts can be consolidated into one small monthly payment.
Secured Debts
Non-Dischargeable Debts
It’s a formal negotiation with your creditors that lets you repay part of your debt over a maximum of 5 years. It’s arranged by a Licensed Insolvency Trustee, allows you to keep your assets while reducing your unsecured debt by up to 80% (each case is different). Once registered, creditors cannot contact you or take legal action.
A Consumer Proposal will appear on your credit report for 3 years after completion or 6 years from filing, whichever comes first. If you are already behind on your debt payments, a Consumer Proposal can sometimes be the fastest way to recover your credit.
Most unsecured debts can be included, such as:
Secured debts such as mortgages and car loans cannot be included.
Life happens. If you miss a payment, you can catch up by bringing your payments up to date. However, If you fall three payments behind, your proposal will be annulled. If your financial situation changes, speak with us right away, we can often work with you to adjust your payment schedule and explore available options.
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