Canadian Consumer Proposal

A Canadian Consumer Proposal is a formal agreement between a debtor and their creditors, approved by a Licensed Insolvency Trustee, that offers to settle outstanding debts for less than the full amount owed. It allows individuals facing financial difficulty to pay a reduced sum over a specified period, often resulting in the suspension of interest and collection efforts. This process provides an alternative to bankruptcy, helping debtors manage their finances while protecting their assets, and typically lasts up to five years, providing a manageable path toward debt relief.