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Consumer Proposals

Filing a Consumer Proposal

Filing a consumer proposal – your first step towards financial relief!

If you have accumulated a lot of debt and the required monthly payments exceed your ability to pay, your first thought may be to apply for a consolidation loan. Easier said than done, right? If payments have been missed and your credit rating is less than stellar, then yes, it may be tough. Instead, consider a consumer proposal – a very effective way to consolidate your debts and to get out of debt for much less than the cost of a consolidation loan.

In summary, when filing a consumer proposal, you make an offer to pay your creditors an agreed upon sum over, on average, 4 to 5 years. A consumer proposal is filed with your creditors, on your behalf, by a Licensed Insolvency Trustee and Proposal Administrator. A consumer proposal must be accepted by your creditors, so the Licensed Insolvency Trustee will guide you through what amounts and terms will likely to be accepted.

When filing a consumer proposal:

  • With a few exceptions, all collection actions being taken by unsecured creditors immediately stop.
  • Unsecured creditor enforcement actions, such as seizing bank accounts and wage garnishments immediately stop.
  • Interest accruing on your unsecured debts stops.
  • Outstanding income and HST returns are completed and filed on your behalf.
  • Income and HST accounts in dispute, or under objection with CRA, are resolved within the consumer proposal.
  • Unaffordable or over financed homes and vehicles are disposed of and the loss on sale is included in the consumer proposal.
  • Your debt total, in substantially all cases, is dramatically reduced.
  • Your unsecured debt payments are typically consolidated into one affordable monthly payment.
  • Your new monthly payment is usually far less than what you were required to pay before you filed the consumer proposal.
  • You receive expert advice and coaching on budgeting, saving and money management techniques.

Filing a consumer proposal offers many benefits to those who want to consolidate and get out of debt with the assistance of highly qualified professionals, authorized and supervised by the federal government to help you. It is often preferable to borrowing more money or continuing to struggle to make required minimum payments. Once a consumer proposal is accepted it can be paid in full at any time. The sooner you pay it off, the sooner you will return to a life without debt!

If you would like to see if filing a consumer proposal is the right solution for you, please contact us.


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  • Personal Bankruptcy and Consumer Proposal Specialists in Ottawa
  • About us . . . The expertise to resolve your debt crisis

    We are chartered professional accountants, licensed insolvency trustees and proposal administrators. With deep and substantial knowledge and experience in finance, accounting, taxation, bankruptcy and debt- restructuring, we can help you address and resolve your financial troubles. We can stop harassing phone calls, wage garnishments and collection law suits, while implementing a solution that addresses creditors’ concerns, with monthly payments you can afford. Book a free consultation today.

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