A consumer proposal is a formal debt settlement option legislated under the Bankruptcy and Insolvency Act and filed with a licensed insolvency trustee.

Filing a Consumer Proposal

A consumer proposal:

  • Prevents creditor action including collection activity and wage garnishments
  • Stops all interest charges
  • Allows you to compromise (pay a portion acceptable to your creditors and yourself) your total debt

It is the right option if you:

  • Have a consistent source of income
  • Are able to make monthly payments
  • Are not able to make the required monthly payments on current debts

Advantages to you:

  • Avoid bankruptcy
  • Consolidate debt payments into one monthly payment
  • Compromise the amount you owe
  • Make personal budgeting easier
  • Protect assets from creditors
  • Does not require you to submit monthly income reports

Consumer proposal is different from filing personal bankruptcy because:

  • It is a debt settlement option that allows you to compromise your personal debts
  • You make affordable monthly payments to a maximum of 60 months
  • Pay back a percentage, acceptable to your creditors and yourself, of your personal debt
  • Results in a R7 credit rating which remains on your credit report for 3 years after your consumer proposal is paid in full

Learn more about consumer proposals.

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