A consumer proposal features one reasonable monthly payment against your debt over a period of no more than 5 years. The amount of the payment is based on your financial situation – it’s what you can afford! Try our Debt Options Calculator to see your options. The professional fees associated with filing a consumer proposal are legislated under the Bankruptcy and Insolvency Act, and are paid by the creditors out of the settlement amount. Your creditors are actually paying your licensed trustee in bankruptcy to help them collect your proposal payments.

Unlike filing personal bankruptcy where if you make more money your monthly surplus income payments will increase, when you make a consumer proposal your payments are fixed regardless of changes in income. Thus, if you expect your income to increase, filing a consumer proposal may be a better choice than personal bankruptcy.

It doesn’t take long to file a proposal and get relief from your creditors, often proposals can be filed at your first meeting with one of our licensed trustees in bankruptcy. However, once the proposal is filed, creditors are given the option to accept your consumer proposal – and they’re smart to accept it – as they will recover more than they would if you were filing personal bankruptcy.

If you’re wondering if a consumer proposal is right for you, contact our office for a free consultation. We will review your options and help you get a frest financial start. 

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