Welker & Associates Inc.

Consumer Proposal

A legislated debt settlement that allows you to avoid bankruptcy and settle your debts for pennies on the dollar.

Not sure where to start? - Contact Us Now!

Over the years we have helped thousands of people solve their money problems. No matter how bad your situation, we can help.

    Over the years we have helped thousands of people solve their money problems. No matter how bad your situation, we can help.

    Filing a consumer proposal will help you:

    Avoid bankruptcy

    Protect your assets and income

    Stop interest charges

    Prevent collection activity

    Stop wage garnishment and other legal action

    Consolidate your debts into one low monthly payment

    Play Video

    Consider a consumer proposal if you:

    Key considerations:

    Why choose Welker & Associates:

    Ready to settle your debt?

    We have a better than 99% success rate negotiating proposals and have successfully settled millions of dollars worth of debt.

    Any individual that owes less than $250,000, excluding the mortgage on their principal residence, can file a consumer proposal.

    A couple, with joint debt, that owes less than $500,000, excluding the mortgage on their principal residence, can file a joint-consumer proposal.

    No, filing a consumer proposal does not affect any of your assets. When you file a consumer proposal you retain ownership and control of all assets, including your car and house, and you are free to sell, refinance or otherwise dispose of any property you own during your proposal.

    There is no upfront cost or fee to file a consumer proposal, and there are no hidden costs or fees during the term of the proposal. All fees and expenses associated with a consumer proposal are legislated under the Bankruptcy and Insolvency Act and paid out of the total settlement amount.

    Consumer Proposal



    All assets are protected

    Some assets may be lost



    Variable based on income

    Requirement to report income

    Once at sign-up

    Monthly throughout process

    Income Tax Returns/Refunds

    Filed by you and refunds paid to you directly

    Filed by the trustee and refunds paid to the trustee

    Ability to rebuild credit rating



    Almost all unsecured debt can be included in a consumer proposal, including but not limited to:

    • Credit card debt.
    • Payday loans.
    • Canada Revenue Agency debt.
    • Bank loans.


    There is a very small list of debts that cannot be included in a consumer proposal. These debts are listed in Section 178 of the Bankruptcy and Insolvency Act and include:

    • Traffic fines.
    • Court awarded damages related to bodily harm, assault or wrongful death.
    • Spousal support.
    • Child support.
    • Any debt incurred as the result of fraud.
    • Government student loan debts (if you have haven’t been out of school for more than 7 years).

    Creditors accept consumer proposals because they are good business decisions that provide a higher recovery than bankruptcy. Obviously, creditors want to collect all of the money owed to them. However, when creditors receive a consumer proposal they realize that that isn’t going to happen. They know that if they are unwilling to accept a reasonable settlement (consumer proposal) there is a high probability that you may file bankruptcy, which would result in a lower recovery. Therefore, it is the threat of bankruptcy, and the risk of a potential lower recovery, that causes creditors to accept consumer proposals.

    Step 1: Meet with a licensed insolvency trustee:

    • Review your situation and discuss options.
    • Confirm that filing a consumer proposal is the right option for you.
    • Determine the appropriate proposal terms based on your individual situation and budget.


    Step 2: File your consumer proposal:

    • Complete and sign proposal documents with the trustee.
    • Register your proposal with the Office of the Superintendent of Bankruptcy.
    • Send notice of your proposal to your creditors.


    Step 3: Get your proposal approved:

    • Creditors have 45 days from the date of filing to vote on your proposal.
    • If the majority (51%) of creditors by dollar value ($1 = 1 vote) vote in favour of the proposal it is approved as filed.
    • If creditors do not vote within the 45-day voting period, they are deemed to have accepted the proposal and the proposal is approved as filed.
    • If the majority (51%) of creditors by dollar value ($1 = 1 vote) vote against your proposal it does not mean that your proposal is rejected. It simply means that we need to negotiate with the creditors further, and, when necessary, amend the terms of the proposal to reach a mutually acceptable settlement.
    • Deemed Court approval occurs 15 days after creditor approval has been obtained.


    Step 4: Complete your consumer proposal:

    • Make all required payments.
    • When completed, a “Certificate of Full Performance” is issued by the trustee.
    • Completion of the proposal discharges you of any future obligation to the creditors that were included in your proposal.

    Once your proposal is accepted by creditors and approved by the court you must:

    • Make agreed-upon payments to the trustee
    • Attend two credit counseling sessions
    • File your income taxes on time
    • Pay any income taxes owed in the post-proposal period

    Consumer proposals can vary in length. They can be setup as single payment (lump-sum) proposals or can span a period of up to 5 years (60 months). Regardless of how the proposal is initially setup, all consumer proposals are open and can be paid-off at any time.

    Consumer proposals result in an R7 credit rating which stays on your credit report for three years after you complete your consumer proposal.

    Your Credit Report

    If you’ve been struggling with money problems for a long time it can be difficult to know where to start. As time passes, debts go into collections and get transferred from one company to another making it hard to keep track of who you owe and how much. Fortunately, we can help. With your permission, Welker & Associates Inc. has the ability to view your TransUnion credit report and help you figure out what you owe. Understanding the full extent of your debt issues is a critical first step in determining the best way forward.


    Andrew P.

    We recently engaged the services of Welker & Associates. We were looking for someone who could help us with our bankruptcy reasonably and fairly. We interviewed several trustees, Welker.ca was by far the most knowledgeable, providing easy to understand scenarios of various options. Welker fit the bill, not only did they help us on time, they saved us lots of money by suggesting cheaper, quicker and more effective alternatives.

    Andrew P.

    Justin Cornelius Horton

    This company is amazing, friendly People, they work with you to put in a payment plan that works for you not them. I went with them and I can now say, I'm Debt Free. They contacted everyone I owed and got what I owed and they got it Cut in Half and then Some. I would Recommend this company and these people to anyone who is falling behind and is Accumulating debt.

    Justin Cornelius Horton

    Kyle Rose Munroe

    I had been overcome by stress for many months not knowing what to do. I wasn't even sure who to talk to about my growing dept. Thankfully I was told about Welker and associates. They came to meet me in Chatham even though they are out of London. The process was easy and the staff was very friendly and reassuring. Thanks to these wonferful people I can get back to my life. Thank you.

    Kyle Rose Munroe

    Kyle Rose Munroe

    I kept telling myself, I've got this, just need another couple weeks to get ahead. It just got me deeper and deeper in a dismal pit of debt. I wanted to give up. I had always thought that you have to try, always just try, so I made one call. That one call left me with something I had not felt in quite a while. Hope. Sue asked me some questions with a sensitivity that was greatly appreciated, she was able to access my situation and was straightforward with what could be done, how and the choices I had. She assured , steered and educated me on my journey to gain control not only on my financial future but my priceless sanity. I am moving forward, I have control, if I slip I can call for guidance.

    One of life's great pleasures is coming across someone who is so well suited to their job. Sue is one of these people I have had the pleasure of her experience and knowledge.

    S. Sharp

    previous arrowprevious arrow
    next arrownext arrow

    Want more information?

    From Our Resource Center

    Get a Free Consultation

    Our initial consultations are always no obligation and free of charge. We will answer all of your questions, help you to understand your situation and develop a personalized plan to become debt free.