A consumer proposal is a legal debt settlement option filed under the Bankruptcy and Insolvency Act of Canada. That means that you receive all the creditor protection afforded in a bankruptcy, while avoiding declaring bankruptcy.
To file a consumer proposal, you must do so through a Consumer Proposal Administrator, who is also a licensed Trustee in Bankruptcy. No-one else can file a formal consumer proposal in Canada.
It is important to note that you do not need a referral to see a Consumer Proposal Administrator. All of the trustees on our site offer a FREE, initial, no-obligation consultation.
If you are considering a consumer proposal, contact an Consumer Proposal Administrator near you.
Your Consumer Proposal Administrator is responsible for:
- Conducting your initial assessment to help you determine if you qualify for a consumer proposal and if that is the correct debt relief solution for you.
- Helping you prepare your proposal, including determining how much you will need to offer to ensure your proposal is acceptable to both you and your creditors.
- Filing the official paperwork with the Office of the Superintendent of Bankruptcy which begins the consumer proposal process and provides your stay of proceedings. This means any wage garnishments and collection actions stop.
- Communicating the terms of your proposal to your creditors by mailing or faxing the document to each creditor. He or she also collects, records and approves claim forms submitted by your creditors, the amount of which is used to access the votes received in your proposal.
- 45 days after the filing of your proposal, your Consumer Proposal Administrator counts the votes received for and against your proposal.
- If a creditors meeting is called, they will act as administrator at the meeting and can help you negotiate additional payment terms if that is necessary.
- Once your proposal is approved, they complete all administration duties including collecting payments, dealing with your creditors, arranging for your credit counselling sessions and making payments to your creditors in settlement of your debts.
- Upon successful completion of your proposal, your Consumer Proposal Administrator will issue you a Certificate of Completion.
Your Consumer Proposal Administrator will work with you to find a debt repayment plan that you can afford. After looking at your financial situation, they can help you decide if a consumer proposal is your best option. If it is, they will explain the process and help you make an informed decision. Contact a local Consumer Proposal Administrator today. Let us help you get out of debt.