Many people want to know, exactly what is a consumer proposal?
A consumer proposal is NOT a bankruptcy, though the legislation that governs it is the Bankruptcy and Insolvency Act. It is a legal deal where you make an offer to all of your creditors to settle the amount you owe them, for typically less than you owe them. As long as you have the ability to re-pay a portion of your debt, and you don’t owe more than $250,000 (not including your mortgage) you may qualify to file a consumer proposal.

The cost of filing this proposal depends on the amount settled on with your creditors. Once you agree on an figure, a fixed monthly amount is established and that amount must be paid each month until the proposal is paid in full. Because a proposal can be spread out over a longer term (up to 5 years), the payments are often more affordable than a bankruptcy, and less than what you are currently paying to reduce your debt.

Filing a consumer proposal will impact your credit report in that an R7 rating will be reported. This will stay on your credit report for up to 3 years from the date you complete your proposal. We work with you throughout the proposal to discuss how to increase and rebuild your credit score. Most people we work with find that their ability to obtain credit is better after filing with us and completing the process than before. In most cases, we can create a plan that allows you to keep your assets and minimize the disruption to your day-to-day life through a consumer proposal.