A consumer proposal allows you to adjust your monthly payments according to your personal situation, keep the property you own and accumulate more properties with no danger of leans while at the same time stopping law suits and interest payments. In most cases your creditors will accept an amount lower than the total debt repayment and your degree of solvency is less affected than in the case of a bankruptcy. Preparing a proposal can be very complex, however, and should only be done by a Licensed Insolvency Trustee. These are the only professionals in Canada that are qualified to administer a proposal and they’ll be directly dealing with your creditors.

Advantages of a Consumer Proposal:

  • Avoid having to declare bankruptcy
  • You’ll be able to keep your assets (as long as you continue to make payments on your secured loans)
  • Unsecured creditors will have to stop all collection actions against you.
  • Most or all garnishments on your wages will be stopped
  • You will be able to pay back your unsecured creditors at reduced amounts based on your actual ability to pay at the time the proposal is filed
  • Interest and penalties, including those on tax debt, will stop accumulating once your proposal has been filed