What is a consumer proposal?

A consumer proposal is a legal settlement under the Canadian Bankruptcy and Insolvency Act facilitated by a Licensed Insolvency Trustee. The average settlement is 30 – 35% of what you owe and can be paid in monthly payments over 60 months.

Advantages of a consumer proposal vs bankruptcy

A consumer proposal will allow you the opportunity to have it removed from your credit report much more quickly than a bankruptcy. It will also allow you to rebuild your credit score after it’s approved by your creditors, which only takes 45 days.

Advantages of a consumer proposal vs credit counselling

A consumer proposal allows you to settle your debt for much less than what you owe. In contrast a debt management plan under a credit counselling agency will require you to repay 100% of your debt and will still negatively affect your credit.

What is the cost of a consumer proposal?

There is a filing fee of $104.03 payable to the Office of the Superintendent of Bankruptcy. You pay nothing else to us until we get your consumer proposal approved. Our fees are paid by out of your proposal payments according to a tariff under the Bankruptcy and Insolvency Act.

Avoid this scam when filing a consumer proposal

Do not use third -party intermediaries such as debt consolidation companies to file a consumer proposal. Many of them will ask you to pay up to thousands of dollars in unnecessary fees to bring your file to a Licensed Insolvency Trustee. Only an LIT can file and administer a consumer proposal.