Lower Total Repayment
You may be able to settle eligible unsecured debt for less than the full amount owed.
A practical path toward debt relief
Reduce Your Debt With a Consumer Proposal
A consumer proposal may let you reduce eligible unsecured debt, combine it into one manageable monthly payment, and keep your assets.
🔒 Confidential
✓ No obligation
✓ Free initial assessment
Understanding the option
What Is a Consumer Proposal?
A consumer proposal is a formal debt-relief process administered by a Licensed Insolvency Trustee. The trustee prepares an offer to your unsecured creditors based on what you can reasonably afford.
The proposal may reduce the amount you repay, extend the repayment period, or combine both. Once accepted, you make the agreed payments through the trustee.
Debts that may be included:
Credit cards
Personal loans
Lines of credit
Payday loans
Tax debt
Unsecured collections
Secured debts such as mortgages and vehicle loans are generally treated differently.
Potential benefits
Why People Consider a Consumer Proposal
The result depends on your income, assets, debt level, and creditors, but these are common reasons people explore this option.
One Monthly Payment
Several unsecured debts can be replaced with one structured payment.
Interest Stops
Interest on debts included in the proposal generally stops after filing.
Keep Your Assets
A proposal can allow you to retain assets while maintaining secured payments.
Legal Protection
Filing can stop most collection activity involving debts included in the proposal.
Clear Repayment Timeline
You receive a defined payment plan that generally lasts no longer than five years.
Who may qualify
When a Consumer Proposal May Be a Good Fit
It may be worth considering when you cannot repay all of your unsecured debt but can afford a consistent monthly payment.
Start the Assessment✓
Your unsecured debt has become difficult to manage.
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You have reliable income or another way to make regular payments.
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You want to avoid bankruptcy where possible.
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You want one structured monthly payment.
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You are ready to have your finances reviewed by a Licensed Insolvency Trustee.
The process
How a Consumer Proposal Works
Complete the Assessment
Share information about your debt, employment, province, and financial situation.
Review Your Options
A qualified professional reviews your situation and explains the available solutions.
Speak With a Trustee
A Licensed Insolvency Trustee determines whether a proposal is appropriate.
Begin Your Payment Plan
Once accepted, you make the agreed payments and complete required counselling.
Compare your options
Consumer Proposal vs. Bankruptcy
Consumer Proposal
Repay an agreed portion of your debt
- Keep assets in most cases
- Fixed monthly payment
- No additional interest on included debt
- Maximum repayment period of five years
- Avoids an assignment in bankruptcy
Bankruptcy
A formal process for serious insolvency
- Some assets may need to be surrendered
- Payments may depend on income
- Duration varies by circumstances
- May fit when no affordable proposal is possible
- Must be administered by a Licensed Insolvency Trustee
A Licensed Insolvency Trustee must review your circumstances and explain the legal and financial consequences of each option.
Common questions
Consumer Proposal FAQs
Will a consumer proposal affect my credit?
Yes. A consumer proposal is reported to the credit bureaus. The reporting period depends on when it is completed and the applicable rules.
Can I keep my house and vehicle?
In many cases, yes. You generally continue making payments on secured debts. Your trustee will review your assets and explain how they affect the proposal.
How much debt can be included?
Consumer proposals have legal debt limits, excluding a mortgage on your principal residence. A trustee will confirm whether your situation is eligible.
How long does a consumer proposal last?
The repayment period can be up to five years. Some proposals are completed sooner.
Can creditors continue calling me?
Once a proposal is filed, most unsecured creditors included in it must stop collection activity, subject to applicable legal exceptions.
Clarity today, confidence tomorrow.
Find Out Whether a Consumer Proposal Could Work for You
Complete our confidential assessment and take the first step toward understanding your debt-relief options.