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Consumer Proposals

A Consumer Proposal is a formal agreement between an individual and their creditors to settle debts. It allows someone struggling with debt to propose a payment plan that is often less than what they owe, making it more manageable. The proposal is submitted to a licensed insolvency trustee, who helps negotiate terms with creditors. If accepted, it legally binds all parties, and creditors cannot take further action to collect. This option can help individuals avoid bankruptcy while still addressing their financial challenges, providing a chance to regain control of their finances.

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    A consumer proposal is a legal agreement between a person struggling with debt and their creditors in Canada. It allows the individual to offer a manageable repayment plan, typically reducing the total amount owed. This proposal is designed to help avoid bankruptcy, making it easier to settle debts while maintaining some assets. The proposal must be filed with a licensed insolvency trustee, who will then negotiate with creditors. If accepted, the individual makes regular payments over a set period, usually up to five years, after which remaining unsecured debts are forgiven.