Consumer Proposal

A consumer proposal is a formal agreement between a debtor and their creditors to pay a reduced amount of what is owed over a specific period, typically maintained under the supervision of a licensed insolvency trustee. It helps individuals avoid bankruptcy by providing a manageable plan to settle debts while protecting assets. Once approved by creditors and the court, the debtor makes agreed-upon payments, and remaining debts are often forgiven, offering a fresh financial start. This option balances creditor recovery with debtors’ ability to fulfill obligations without severe impacts on credit or assets.