Make A Deal To Eliminate Your Debt

  • Reduce your monthly payments
  • Freeze interest
  • Creditor protection
  • Federally licensed administrator
Contact a Consumer Proposal Administrator

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

Debt Settlement in Canada

You don’t want to go bankrupt but are confused about your options to deal with your debt. In Canada, you might choose to consolidate your debts through a debt consolidation loan, talk to a credit counsellor about a Debt Management Plan or settle your debts through a Consumer Proposal. There are also many unlicensed debt consultants out there advertising proposals. How do you know what option is safe and right for you?

A Consumer Proposal Administrator is required by law to discuss all of these alternatives with you. Read more in our article comparing debt settlement options across Canada

Debt Settlement

Latest Articles

How Long Does A Consumer Proposal Last?

Because a consumer proposal is a negotiated debt settlement, how much you pay and for how long depend upon the agreement, or proposal, you put to your creditors. There are some conditions however. The maximum period of time that you can offer to pay a consumer proposal over is five years. However, there is no minimum time frame.  If you have the ability to offer to repay a portion of your debt as a one-time…

How Is Cosigned Debt Treated In A Consumer Proposal?

A common concern among my clients is how their cosigned debts will be treated in a consumer proposal. There’s a misconception that each person is responsible for half of the debt, when the reality is that each person is responsible for the full amount of the debt. That doesn’t mean that the lender or creditor can collect double the amount owed. It just means that the lender can collect the full amount from either party. Therefore…

Build a 5-Year Debt Repayment Plan

If you find yourself only able to make the minimum payments on your credit cards or you’re using one loan to pay off another, it may be time to take action on your debt. The good news is you can build a 5-year debt repayment plan by filing a consumer proposal. We’ve detailed below exactly what you need to be doing for the next 5 years to accomplish your debt repayment goal. Make your debt-free…