Consumer Proposals Made Easy

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Consumer Proposal Specialist

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Why work with us to file your consumer proposal?

There are several reasons why you might want to consider working with us. Here’s just a few below.

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We Can Help

While it’s possible to file a consumer proposal on your own, working with a consumer proposal company can provide you with a range of benefits, including expert advice, reduced stress, improved chances of success, protection from creditors, and ongoing support throughout the process. If you’re considering a consumer proposal, it’s worth exploring your options and determining whether a consumer proposal company is the right choice for you.

Access to Expert Advice

We can create a proposal that’s tailored to your specific financial situation

Improved Chances of Success

Working with us gives you a higher chance of being accepted by your creditors, increasing your chances of success.

Support throughout the Process

We can provide you with ongoing support throughout the process,

Consumer Proposals: An Alternative to Bankruptcy

If you’re struggling to keep up with your debts, you may be considering bankruptcy as a solution. However, bankruptcy is not always the best option for everyone, and there may be an alternative that can help you avoid bankruptcy while still addressing your debts: a consumer proposal.

What is a Consumer Proposal?

A consumer proposal is a legal debt settlement agreement between you and your creditors. It’s a formal process that’s administered by a licensed insolvency trustee and allows you to make an offer to your creditors to settle your debts for less than the full amount owed.

Under a consumer proposal, you can negotiate with your creditors to pay off your debts over a period of up to five years, often with a reduced interest rate. Your trustee will help you develop a proposal that outlines how much you can afford to pay each month and how much you can offer to your creditors.

Once your proposal is complete, your trustee will send it to your creditors for review. If a majority of your creditors agree to the proposal, it becomes legally binding and all participating creditors must accept the terms of the proposal. This means that even creditors who did not vote in favor of the proposal are still bound by its terms.

Why Choose a Consumer Proposal?

A consumer proposal can be a good option for people who are struggling with debt and are unable to keep up with their payments. Here are some of the benefits of a consumer proposal:

Avoid Bankruptcy

One of the most significant advantages of a consumer proposal is that it allows you to avoid filing for bankruptcy. Bankruptcy can be a challenging process that can have significant long-term consequences, including a negative impact on your credit rating. A consumer proposal can be a less severe option that allows you to address your debts while avoiding the negative consequences of bankruptcy.

Lower Monthly Payments

Under a consumer proposal, you can negotiate a lower monthly payment with your creditors. This means that you’ll have more money available each month to cover your living expenses and other bills. Additionally, a consumer proposal can often offer a lower interest rate than what you’re currently paying on your debts, which can save you money in the long run.

Keep Your Assets

Unlike bankruptcy, a consumer proposal allows you to keep your assets, such as your home and car. As long as you continue to make your monthly payments under the terms of the proposal, your assets are protected from your creditors.

Stop Collection Actions

A consumer proposal stops most collection actions against you, including wage garnishments, lawsuits, and harassing phone calls from creditors. This can provide you with some much-needed relief from the stress of dealing with debt collectors.

Protect Your Credit Score

While a consumer proposal will impact your credit score, it’s typically less severe than the impact of bankruptcy. A consumer proposal will remain on your credit report for three years after it’s paid off, while a bankruptcy stays on your credit report for six to seven years. Additionally, if you file for bankruptcy, you may be required to surrender your credit cards, while a consumer proposal allows you to keep them as long as you continue to make your monthly payments.

Who is Eligible for a Consumer Proposal?

To be eligible for a consumer proposal, you must meet certain criteria. You must have at least $1,000 in unsecured debt, which includes credit card debt, lines of credit, personal loans, and payday loans. You must also have a steady source of income that can be used to make your monthly payments under the terms of the proposal.

Not all debts can be included in a consumer proposal, however. Secured debts, such as mortgages and car loans, cannot be included.

Sandy Roferio

Insolvency Specialist

Consumer Proposals Made Easy

Your satisfaction is our goal

(647) 802-1234

Thinking of Bankruptcy?

When facing financial difficulties, both consumer proposals and bankruptcy can provide a way to deal with overwhelming debt. However, there are some key differences between the two options, and there are several reasons why you might choose a consumer proposal instead of bankruptcy.

You Can Keep Your Assets

One of the primary reasons people choose a consumer proposal over bankruptcy is that you can typically keep your assets. In a consumer proposal, you make an offer to your creditors to pay back a portion of your debt over a set period of time, usually up to five years. You don’t have to give up your assets, such as your home or car, as long as you can continue making your payments.

In contrast, in bankruptcy, your assets may be sold to pay back your creditors. While there are exemptions in place to protect some assets, such as your primary residence or necessary tools of trade, if you have significant assets, you may lose them in a bankruptcy.

Your Credit Score Will Be Affected Less

While both consumer proposals and bankruptcy will negatively impact your credit score, a consumer proposal is generally considered less severe. In a consumer proposal, you’ll typically pay back a portion of your debt, which shows creditors that you’re making an effort to repay what you owe. While a consumer proposal will stay on your credit report for three years after it’s completed, bankruptcy will stay on your credit report for up to seven years.

You Can Avoid the Stigma of Bankruptcy

For some people, the social stigma associated with bankruptcy is a significant concern. Filing for bankruptcy can be seen as a last resort and can lead to feelings of shame and embarrassment. In contrast, a consumer proposal is a private process that doesn’t carry the same level of stigma.

You Can Avoid the Discharge Process

In a bankruptcy, you must complete a discharge process before your debts are discharged. This process can be lengthy and complex, and it may involve court appearances and additional fees. In contrast, with a consumer proposal, once you’ve made all of your payments, your debts are considered paid in full, and you don’t have to go through a discharge process.

You Can Retain More Control

Finally, with a consumer proposal, you retain more control over your finances. You work with a licensed insolvency trustee to create a proposal that works for your unique financial situation, and you make the payments over a set period of time. In contrast, with bankruptcy, a trustee takes control of your finances and sells your assets to pay back your creditors.

In summary, while bankruptcy can provide a way to deal with overwhelming debt, a consumer proposal may be a better option for those who want to keep their assets, minimize the impact on their credit score, avoid the stigma of bankruptcy, avoid the discharge process, and retain more control over their finances. However, every individual’s financial situation is unique, and it’s important to consult with a licensed insolvency trustee to determine which option is best for you.

3 Steps in Consumer Proposal

Consultation with a Licensed Insolvency Trustee (LIT):

The first step in applying for a consumer proposal is to consult with a Licensed Insolvency Trustee (LIT). An LIT is a licensed professional who is authorized to administer consumer proposals in Canada. During the consultation, the LIT will review your financial situation, including your income, expenses, assets, and debts. Based on this information, the LIT will determine whether a consumer proposal is a viable option for you and whether it is a better alternative than other debt relief options, such as bankruptcy.

Proposal development and submission:

If the LIT determines that a consumer proposal is the best option for you, they will work with you to develop a proposal that is acceptable to both you and your creditors. The proposal will outline how much you are willing to pay back to your creditors and over what period of time. Once the proposal is developed, the LIT will submit it to your creditors on your behalf.

Creditor vote and proposal acceptance:

After the proposal has been submitted to your creditors, they will have 45 days to vote on whether to accept it or not. If the majority of your creditors vote in favour of the proposal, it will be accepted and become legally binding. You will be required to make the agreed-upon payments to the LIT, who will distribute them to your creditors. If the proposal is not accepted, you may need to consider other debt relief options, such as bankruptcy.