What is a Consumer Proposal?
A Consumer Proposal is an option available to resolve your financial difficulties
while avoiding bankruptcy. To qualify you must:
- Owe less than $250,000.00, excluding the mortgage on your residence.
- Have a stable source of income sufficient to meet your usual expenses
and the agreed payment into the proposal.
Consumer Proposals have the following features:
- The Trustee recommends the proposal to your unsecured creditors and 75%
by amount must vote in favour. Once approved by this majority then it is
binding on all of them.
- Secured creditors do not participate. If your car is financed or leased
and you have a mortgage on your home, then those payments continue as usual.
- Wage assignments and garnishees are stopped and your creditors cannot
start or continue legal action against you for the debt.
- Interest costs cease.
- You make payments to the Trustee each month for an agreed period
and the money is distributed to your creditors.
- Upon completion your total unsecured debt at the date of the proposal is
We will work with you to develop a proposal to your creditors. The monthly
payment and duration must be within your capacity to pay while providing a
reasonable repayment to your creditors before we can recommend it.