Debt Advice Canada, Bankruptcy, Consumer Proposals, Debt Settlement, Apply Online

What is a Consumer Proposal?

A Consumer Proposal is a formal agreement between you and your creditors to pay back what you can afford towards your debts.

Once in place it is an extremely powerful legal tool to help you back on the road to financial stability. It is designed for people who have taken out too much debt and are struggling to meet their monthly repayments.

The minimum repayment period for a Consumer Proposal is 60 months* (5 years) unless an alternative arrangement is agreed. You will be required to pay a set amount per month for the 60 month (or longer) period. At the end of term, provided that you have met your obligations and the Consumer Proposal is not extended, you will be discharged from any obligations and outstanding unsecured debts.


Crown

Is this a Legitmate Scheme?


Yes absolutely. The Consumer Proposal was established and is governed by the Office of the Superintendent of Bankruptcy and constitutes a formal repayment proposal presented to a debtor`s creditors via a licensed Insolvency Trustee.

See more information here

See If you Qualify

Question 1 of 5

Don’t feel alone in debt

Group of people 128,846 Insolvencies were registered last year in Canada (2018)
Figures taken from Government of Cananda
Pig coin bank $25 million Estimated amount saved by consumers
Figures taken from Government of Cananda
Signature letter 60% Average reduction in monthly repayments
TrustPilot rating 9.4/10 How our customers rated us

Consumer Proposal Example

Here is an example of how a Consumer proposal make your debts affordable.

Example Unsecured Debts

1 Personal loan $8,000
2 Credit card 1 $6,812
3 Property Tax $4,092
4 Tax Debts $5,399
4 Over payments $5,200
4 Overdraft $700
Total Owed $30,204

Your Monthly Repayments Would Be

Before
a Consumer proposal
$748
(total contractual repayments)
After
a Consumer proposal
$295
(total contractual repayments)
Reduced by
60%

* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.

Do I qualify?

To qualify you must meet the following criteria:

  • You currently live in Canada or have a place of business in Canada
  • You have debts of $1,000 or more
  • You are able to pay a monthly contribution from income and/or have realisable assets that will enable a minimum return to creditors of 10p in the pound
  • You are insolvent (you are unable to pay your debts as they fall due and/or your liabilities are greater than your assets)
Qualify calculator
Advisors help

How Can I Apply?

We make it as easy as possible. Here’s how:

  • Simply fill out the form here and one of our experienced advisors will call you back at a time requested by you.
  • If you decide to proceed then an adviser will arrange a face-to-face meeting at your home or at another convenient place. Alternatively, a further telephone meeting will be arranged should a face to face meeting not be possible, for whatever reason.
  • At the meeting an adviser will assess your financial position and advise you of the options available to you.
  • If you are suitable for a Consumer Proposal and choose to go ahead with it, you will be asked to sign the relevant documents after being given time to fully consider your decision. This will involve more than one meeting.

Pig coin bank How much does it cost to setup?

Our initial advice is free and there is no cost if you change your mind after having met with one of our advisers. Should you choose to enter into the debt solution then there will be a charge for our services. Your adviser will explain this fully and will answer any questions you may have.

ScalesAm I dealing with a legitimate company?

We are one of Canada’s leading debt solutions companies and help thousands of people each month become debt free. We can provide advice on Consumer Proposals, Debt Consolidation, Debt Settlement, Credit Counselling and Bankruptcy.

See If you Qualify

Question 1 of 5

Debt Collector & Bailiff Help Guides

Getting hassle from a creditor or debt collector?

Dealing with creditors and debt collectors can be daunting. Harrassing phone
calls, debt letters and home visits are enough to increase stress levels and
make you bury your head in the sand further.

We created these handy guides section on how to deal with creditors, debt
collectors and bailiffs. Simply search for the company thats corresponding
with you and read our guide on how to deal with them.

Each guide comes with expert advice, videos, tips and downloadable letters
which you can use to keep them at bay

Debt Collector & Bailiff Help Guides

Getting hassle from a creditor or debt collector?

Dealing with creditors and debt collectors can be daunting. Harrassing phone
calls, debt letters and home visits are enough to increase stress levels and
make you bury your head in the sand further.

We created these handy guides section on how to deal with creditors, debt
collectors and bailiffs. Simply search for the company thats corresponding
with you and read our guide on how to deal with them.

Each guide comes with expert advice, videos, tips and downloadable letters
which you can use to keep them at bay

Frequently Asked Questions

Got a question? Maybe we can have an answer for you here…

What happens to my home in a consumer proposal?

A consumer proposal does not usually involve losing any assets such as your home. If you continue to make payments on your mortgage and vehicle loans as needed, you should be able to keep these assets. As long as your creditors agree to your proposal, you are allowed to keep the assets that you own.

Money invested in RRSPs is typically protected under a consumer proposal (with some exceptions) and money invested in RESPs and TFSAs may also be protected under a consumer proposal.

Your trustee will provide you with specific information on what will happen to your assets before you make the decision to file a consumer proposal. However, a consumer proposal does not generally involve surrendering assets.

How much debt can be written off in a Consumer Proposal?

The amount of debt that can be written off in a consumer proposal varies widely as it depends on your debts and your creditors. When making a consumer proposal you must offer your creditors more than they would receive if you were to go bankrupt.

Generally, you will repay 30 to 40% of your debt during a consumer proposal over a period of time lasting up to 60 months (5 years).

Your proposal administrator (only a Licensed Insolvency Trustee can act as a proposal administrator) will examine your assets, income and budget to determine what you would pay in a bankruptcy and what you can afford to pay to your creditors under a proposal.

The trustee will use this as a guide to determine your consumer proposal amount.

The cost to file the proposal is covered by the payments under the consumer proposal; there is no additional payments to be made.

How long does a consumer proposal last?

Payments can be spread over a maximum of 60 months. If you can afford more each month, you can shorten your proposal term or offer a lump sum payment.

When will my consumer proposal be approved?

Once your proposal documents are signed they will be electronically filed with the government and your creditor protection starts. At that time, you stop making payments to your creditors.

  • A consumer proposal is approved if a majority of creditors (based on the dollar value of proven claims) vote yes after which it is approved by the Court
  • A meeting is required if at least 25% of your unsecured creditors ask for one (based on the dollar value of proven claims)
  • Creditors have 45 days to vote or request a meeting

Failing to vote is considered a yes vote.

It is possible to negotiate to try to obtain agreement.

What is the acceptance rate in a consumer proposal?

There are three rules of thumb for a successful consumer proposal:

  • You must offer more than creditors would receive in a bankruptcy
  • It must meet the minimum expectations of your creditors
  • Your payments must be affordable

READ MORE FAQS HERE

Great advice

Friendly and helpful staff. Kept me informed and explained every step. No judgement just honest help.

Peter CoteQuebec

Best decision I’ve made in years

Such an easy process from start to finish. The staff were so friendly and helpful. My only regret is I didn’t do it sooner.

Simon TremblayOntario

Highly recommended

Would recommend to anyone who is struggling with debt. Great staff and friendly, helpful service A+++++

Lewis FournierAlberta

Absolute lifesavers!!!

Absolute lifesavers!!! Feel like massive weight has been lifted from my shoulders. Would recommend to anyone who is having problems and need financial advice. Couldn’t have asked for a better service. Thank you so much.

David LapointeNunavut

A weight off my shoulders

The most difficult part was making the first call. Every step after this was made easier by the supportive staff and easy to use technology. The best decision I have made in a very long time.

Russel NadeauNova Scotia