Do you own a home that has some equity but not enough equity to be able to refinance and pay off your unsecured debts such as credit cards and/or lines of credit? If so, then a consumer proposal is a good way for you to deal with your debts and avoid filing for bankruptcy.
A consumer proposal in Canada allows you to keep your home and equity and make a deal with your creditors to settle your debts. Filing a proposal is different from filing a bankruptcy in several ways. One big difference is that you remain in control of your assets when you file a consumer proposal. This means that you have the ability to sell an asset without needing the consent of your Trustee.
At some point during your proposal you may decide to sell your home to pay off your consumer proposal early. Selling your house is allowed and, in fact, there are several benefits to paying off your proposal early. The biggest benefit to you is that the faster you pay off your proposal the faster it will purge from your credit report allowing you to rebuild your credit quicker.