What is a Consumer Proposal?

A Consumer Proposal is an option available to resolve your financial difficulties while avoiding bankruptcy. To qualify you must:

  1. Owe less than $250,000.00, excluding the mortgage on your residence.
  2. 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:

  1. 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.
  2. 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.
  3. Wage assignments and garnishees are stopped and your creditors cannot start or continue legal action against you for the debt.
  4.  Interest costs cease.
  5. You make payments to the Trustee each month for an agreed period and the money is distributed to your creditors.
  6. Upon completion your total unsecured debt at the date of the proposal is discharged.

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.

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