Consumer proposals can be offered in many ways. The conventional way is to offer payments over a period of time, up to five years. However, there’s little to restrict a bit of creativity in a consumer proposal. In fact, proposals to creditors can be offered in as little as one payment. Filing a consumer proposal as a lump sum can be a good option for someone who has access to some cash but not enough to…
Consumer Proposal: Canada's #1 Alternative to Bankruptcy
A consumer proposal is the only debt settlement program administered by the federal government. It was introduced into the Bankruptcy & Insolvency Act as an alternative to bankruptcy for individuals who are struggling with debt payments but do not want to file bankruptcy.
A consumer proposal gives you protection from your creditors while you make a deal to repay a portion of your debts. You pay only what you can afford. Your creditors get more than they would in a bankruptcy. It’s a win-win for both you and your creditors.
The only way to file a Consumer Proposal is through a licensed Consumer Proposal Administrator. Your administrator is also a licensed bankruptcy trustee since both procedures are governed by the federal government through the Bankruptcy & Insolvency Act. If your counsellor is not a trustee, they cannot file a Consumer Proposal for you.
Read More About Consumer Proposals
Avoid Filing Bankruptcy – Compare Your Options
You don’t want to go bankrupt but are confused about your options. Each have different advantages and disadvantages and we recommend you compare each alternative carefully to see which might be best for you. In Canada, you may choose to consolidate your debts through a debt consolidation loan, refinance with a second mortgage, talk to a credit counsellor about a Debt Management Plan or settle your debts through a Consumer Proposal.
A Consumer Proposal Administrator is required by law to discuss all of these alternatives with you.
Compare Your Options
What is a consumer proposal? A proposal to creditors is a deal you negotiate with the people you owe money to in order to repay a portion (or perhaps all) of what you owe. If you like legal terms, a proposal is an “arrangement” to “settle” your debts for less than their full amount. You might be asking yourself, “Why would anyone accept a deal for me to repay less than what I owe?” That’s…
What is the OSB? The Office of the Superintendent of Bankruptcy (OSB) manages all bankruptcy and consumer proposal filings in Canada. They monitor the administration of bankruptcies and proposals as well as the activities and behaviour of Trustees in Bankruptcy, Consumer Proposal Administrators, creditors and you the debtor. When your Consumer Proposal Administrator files your proposal, the paperwork is electronically sent to the Official Receiver’s office – the federal government body that handles operations for the OSB. They review the documents to ensure that…