Consumer Proposal Victoria 2019

Victoria is, without a doubt, one of the most beautiful places in the country to live. However, this often comes with a price, as the cost of living in Victoria is high and growing rapidly.

As a result, many people in the city and surrounding area find themselves struggling with debt. Some people are able to help themselves out of debt, but others might require a bit of help. If debt relief options like credit counselling, debt consolidation, or debt settlement haven’t helped, you may want to consider a consumer proposal.

What is a Consumer Proposal?

A consumer proposal is a legal process in which you will enlist the help of a Licensed Insolvency Trustee (LIT) in order to pay back part of what you owe to your creditors (learn more about LITs here). The repayment amount will depend on factors like your income and the types of assets that you own.

Consumer proposals offer several benefits such as not putting your assets at risk and having less of a negative effect on your credit when compared to personal bankruptcy. A consumer proposal is also a legally binding agreement that will protect you from debt collection. So basically, it is a legal and binding agreement between you and your creditors to pay back a part of what you owe and they will forgive the rest.

However, there are some qualifications that you must meet before filing a consumer proposal. These are things like:

  • Your debt needs to be between $5,000 and $250,000, not including your mortgage
  • There is no reasonable chance of you being able to repay your debts
  • You have a decent job and are able to make payments every month
  • You can’t get a debt consolidation loan because your debt is simply too high

Understanding Consumer Proposals in Canada

Consumer Proposal Process in Victoria

Now that you know about what consumer proposals are and how they can potentially help you out, what is the consumer proposal process like?

  • The process will begin with a meeting between you and a Licensed Insolvency Trustee (learn more about the consumer proposal initial assessment, click here). You will work together to create a proposal for your creditors based on several factors including the loans you have, your debt level, and your current financial health.
  • Once the proposal is created, your trustee will send it to your creditors. The creditor(s) who lent you the majority of your debt will need to approve it before it is accepted and becomes official.
  • Once accepted, you will have 5 years to make your regularly agreed upon payments to your creditors in order to pay back the amount you owe.

Of course, your LIT will be able to tell you the process a little more in-depth and answer any questions that you might have about any part of the process.

Worried about improving your credit after a consumer proposal? Click here.

Consumer Proposal vs. Bankruptcy

However, if you are dealing with severe debt problems, a consumer proposal isn’t the only option at your disposal. A bankruptcy is a popular and well-known option as well. In an order to help you choose which is right for you, we’ll look at the similarities and differences between the two.


  • They are both extreme relief options.
  • They both negatively affect your credit, but bankruptcy will affect it more with an R9 rating compared to the R7 rating that consumer proposals get.
  • They both offer you protection from debt collection and legal action.
  • Both are legally binding procedures.
  • Both require the help of a Licensed Insolvency Trustee to negotiate with your creditors.


  • Bankruptcy has no debt limits
  • Bankruptcy doesn’t require you to pay back any of your debts
  • Unlike consumer proposal, a bankruptcy can cause you to lose some assets
  • Consumer proposals often last quite a bit longer than the bankruptcy process.

As for which you should choose, that will depend on your unique situation. Whichever method you are leaning toward, you should be sure to speak with a professional as they will be able to give you the right advice and guidance for your unique situation.

Learn How to Tackle DebtCheck out this infographic to learn how to create a debt-free plan.

Getting The Best Debt Relief Possible

Think a consumer proposal is the correct solution to your debt problems? If so, Loans Canada is confident that we can help you find the best option possible.

How useful was this post?

Click on a star to rate it!

Posted by
After dipping his toes into freelance writing while still enrolled in school, Kale decided to pursue freelance writing as his career after earning his Bachelors degree from the University of Regina. In his six-year career as a professional writer, Ka...

Lenders in this region:
Provider Rating
Pylo Finance 4/5
Fresh Start Finance 4/5
Marble Finance 5/5
Money Mart 4/5
Speedy Cash 5/5
Private Loan Shop 5/5
Progressa 5/5
My Canada Payday 4/5
Mr. Payday 4/5
Money Provider 5/5
Loan Express 3/5
Loan Away 5/5
Lendful 3/5
LendDirect 5/5
Health Smart Financial Services -
GoDay 5/5
iCash 5/5
Focus Financial Inc. 2/5
FlexFi 5/5
Eastern Loans 5/5
DMO Credit 5/5
Capital Cash 2/5
Credit 700 2/5
Credit Club 5/5
Credit2Go 3/5
Ledn 5/5
Amber Financial 5/5
Affirm Financial 5/5
310 Loan 2/5
Newstart Canada 4/5
Ferratum 5/5
SkyCap Financial 3/5
Fairstone 2/5
Lending Mate 5/5
Consumer Capital Canada 2/5
Lamina 3/5
Loans SOS -
514 Loans 5/5
CashCo 5/5
UrLoan 5/5
Loan Me Now 4/5
Captain Cash 3/5
BC Loans 4/5
Urgent Loans 4/5
Easy Financial 3/5
Mogo Finance 4/5
Cash Money 5/5
Borrowell 5/5
Magical Credit 5/5
Provider Rating
SharpShooter Funding 5/5
First West Credit Union 5/5
Meridian Credit Union 5/5
Laurentian Bank of Canada 5/5
HSBC Bank Canada 5/5
National Bank 5/5
Canadian Imperial Bank of Commerce (CIBC) 5/5
Scotiabank 3/5
Bank of Montreal (BMO) 3/5
Royal Bank of Canada (RBC) 5/5
CWB National Leasing 5/5
Money in Motion 5/5
Lease Link 5/5
FundThrough 5/5
Econolease Financial Services Inc. 5/5
Easylease Corp 5/5
Dynamic Capital 5/5
Capify 5/5
Canadian Equipment Finance 5/5
Capital Key 5/5
Cashbloom 5/5
BFS Captial 5/5
BDC 5/5
Baron Finance 5/5
B2B Bank 5/5
AOne Financial Solutions 5/5
Borrowell 5/5
iCapital 5/5
Lendified -
IOU Financial 5/5
Company Capital 5/5
OnDeck 5/5
Evolocity 5/5
Lending Loop 5/5
Thinking Capital 5/5
Provider Rating
Car Creditex -
Auto Capital Canada 5/5
Carfinco 5/5
Canada Drives 5/5
Prefera Finance 5/5
Approve Canada 5/5
2nd Chance Automotive 5/5
Newstart Canada 4/5
SkyCap Financial 3/5
Splash Auto Finance by Rifco 5/5
Carloans411 5/5
AutoArriba 5/5
Provider Rating
Newstart Canada 4/5
BHM Financial 2/5
Provider Rating
Centum 5/5
Broker Financial Group Inc. 5/5
Bridgewater Bank 5/5
Alpine Credits 5/5
From the blog...
Can I Use a Personal Loan For Emergencies?
Posted on July 24, 2019
Can I Use a Personal Loan For Emergencies?

For this blog, we’ve teamed up with our partners at Fairstone Almost half of Canadians are $200 away from not meeting their financial obligations each month. You’re not alone if you fall into this category, but being cash strapped can make it difficult to tackle unexpected expenses. … Read More

Have You Made These Mistakes on a Personal Loan Application? 
Posted on April 24, 2019
Have You Made These Mistakes on a Personal Loan Application? 

Applications for personal loans can be daunting, sometimes there is so much to read and interpret. For this reason, many applicants make mistakes on their application. Unfortunately, filling out an application incorrectly can result in your loan being rejected, regardless of how minuscule the error is. To better your chances… Read More

What is Negative Equity? 
Posted on April 19, 2019
What is Negative Equity? 

Equity is defined as the total value of an asset less the owed obligations. Individuals want equity in their assets to be positive because it means they will make money if they were to sell the asset. Sometimes individuals do not have the fortune of positive equity, instead, they have… Read More

Related Videos
How To Identify A Loan Scam
How Your Credit Score is Calculated
The Ins & Outs of Debt Consolidation

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster.

Loans Canada and its partners will never ask you for an upfront deposit, upfront fees or upfront insurance payments on a loan. To protect yourself, read more on this topic by visiting our page on loan scams.