A Guide To Consumer Proposals In Saskatchewan

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Updated On: March 9, 2026

If you’re struggling with overwhelming debt in Saskatchewan, bankruptcy isn’t your only option. Many consumers choose a consumer proposal as a way to reduce what they owe while avoiding the more severe consequences of bankruptcy, like having their assets seized. Recent data shows consumer proposal filings nationwide have continued to rise in recent years, reflecting a growing shift toward this debt-relief solution¹.

Let’s go into more detail about how consumer proposals work in Saskatchewan, who qualifies, what debts are included, and what you can expect throughout the process.

Consumer Proposal In Saskatchewan: Overview

Feature	Details (Saskatchewan)
What It Is	A legal debt settlement agreement between wih unsecured creditors, created and administered by a Licensed Insolvency Trustee.
Program Features	Let you repay only a portion of what you owe while receiving immediate protection from collection actions, wage garnishments, and interest.
Who Can File	Available to individuals with no more than $250,000 in unsecured debt (excluding a mortgage on a primary residence).
Key Benefit	You can reduce your debt without automatically surrendering assets.
Credit Rating Impact	An R7 rating appears on your credit report and may remain for 3–6 years after completion.
Cost to File	No upfront fees. Trustee compensation is regulated by the federal government and included in your agreed payments.

What Is A Consumer Proposal?

A consumer proposal is a formal agreement with your creditors. It is arranged and filed by a Licensed Insolvency Trustee (LIT). Instead of repaying your full debt, you offer to repay a reduced amount, either through monthly installments or a lump sum.

Once creditors accept the proposal, it becomes legally binding on all unsecured creditors included in the filing. That means all collection efforts, litigation threats, or wage garnishments will stop.

How A Consumer Proposal Works In Saskatchewan

After your consumer proposal is filed, the following will happen:

You stop paying unsecured creditors directly
Wage garnishments are halted
Collection calls must stop
Interest on unsecured debts is frozen

Instead, you make one consolidated payment to your trustee, who distributes funds to creditors. Because the process is protected under federal law, creditors must comply once the proposal is filed.

Why Creditors Agree To Reduced Payments

Creditors often accept consumer proposals because they typically recover more than they would through bankruptcy. However, the offer must be reasonable. Your trustee helps determine an amount based on your financial situation while remaining attractive enough for creditors to approve.

If your proposal provides your creditors with a favourable recovery compared to bankruptcy, the odds of proposal approval are more likely.

Do You Qualify For A Consumer Proposal In Saskatchewan?

To be eligible for a consumer proposal, you must meet the following criteria:

Be a resident of Canada
Owe $250,000 or less in unsecured debt (excluding your primary home mortgage)
Be filing as an individual rather than a corporation

What Debts Can & Cannot Be Included In A Consumer Proposal?

Only specific types of debt are eligible to be included in a consumer proposal. Here’s a breakdown of which debts qualify and which ones are excluded².

Debts You Can Include In A Consumer Proposal

A consumer proposal is designed to deal with unsecured debts, or those that are not tied to collateral:

Credit Card Balances: All major credit cards, retail cards, and store‑issued cards qualify.
Unsecured Loans & Lines of Credit: This includes personal loans and unsecured credit lines.
Short-Term Loans: High-interest, short-term loans – like payday loans – can be included.
Tax Debt: Amounts owed to the Canada Revenue Agency (CRA), including income tax, GST/HST, penalties, and interest.
Older Student Loans: Government student loans may be included if you have been out of school for at least 7 years.
Utilities & Other Consumer Bills: Unpaid cell phone bills and utility accounts can be part of the proposal.

Debts You Cannot Include In A Consumer Proposal

Certain debts are excluded and cannot be discharged through a consumer proposal:

Secured Loans: Mortgages, HELOCs, and car loans remain outside the proposal. You must continue payments if you want to keep the asset.
Support Payments: Child support and spousal support cannot be reduced or eliminated.
Court‑Ordered Fines & Penalties: This includes fines, restitution orders, and municipal tickets such as parking violations.
Recent Student Loans: Government student loans are excluded if you have been out of school for less than 7 years.
Debts Involving Fraud: Any debt from fraudulent activity, misrepresentation, or embezzlement cannot be included.
New Debts After Filing: Any debt you take on after the proposal is filed is not part of the agreement and must be paid separately.

How To File A Consumer Proposal In Saskatchewan

You must work with a Licensed Insolvency Trustee. Individuals cannot file on their own. Here are a few LITs in Saskatchewan to help you get started:

MNP Ltd.	– 401, 4908 42nd Street, Lloydminster, SK	Learn More
BDO	– 123 2nd Avenue South, Suite 1000, Saskatoon, SK – 21 Railway Avenue, P.O. Box 668, Redvers, SK	Learn More
Grant Thornton	– 533 Victoria Avenue, Suite 200, Regina, SK – 330-350 3rd Avenue North, Saskatoon, SK	Learn More

What Happens During Your First Meeting

Your first meeting with your LIT will look like this:

Initial Review: Your trustee will examine your income, expenses, assets, and debts to assess your overall situation. The consultation is usually free.
Discussion Of Options: The trustee will explain whether a consumer proposal is appropriate or whether another solution, such as debt consolidation or bankruptcy, might be more suitable.

Pro Tip: Choose a trustee you feel comfortable with, as they will guide you throughout the entire process.

What Happens After You File For A Consumer Proposal In Saskatchewan?

Once your consumer proposal is submitted, the following will take place:

The Offer Is Drafted

Your trustee will prepare a formal document that outlines the following:

The total repayment amount
Payment structure (monthly or lump sum)
Length of repayment (up to 5 years)
Assets you intend to keepThe Proposal Is Filled With The Government

The consumer proposal is filed with the Office of the Superintendent of Bankruptcy.

Creditors Will Vote

Creditors have 45 days to accept or reject the proposal. If creditors holding 25% or more of your debt request a meeting, a vote is held. The majority of the dollar value of voting creditors will determine approval³.

If your creditors reject your proposal, you can revise and resubmit the offer. If negotiations fail, you may need to explore other debt relief solutions.

Learn more: Debt Relief Programs In Canada: What Are Your Options?

Payments Begin

Once your consumer proposal is approved, you make payments directly to your trustee.

Attend Counselling Sessions

You must attend two mandatory financial counselling sessions.

Collection Activity Stops

Once the proposal is filed, creditors must halt wage garnishments, collection calls, lawsuits, and any other attempts to recover the debt. This legal protection gives you breathing room while the proposal is reviewed and processed.

What Is A Stay Of Proceedings?

A Stay of Proceedings is a legal protection that immediately stops creditors from taking or continuing any collection action against you. Once a stay is in place, creditors must halt wage garnishments, collection calls, lawsuits, and any other collection activity.

The stay remains active as long as you follow the terms of your proposal, giving you breathing room to reorganize your finances without pressure from creditors.

Will You Lose Your Assets?

Unlike bankruptcy, a consumer proposal does not automatically require you to surrender property. However, your asset value influences how much you must offer creditors.

Example:

Let’s say you owe $50,000 but own significant non-exempt assets outright, like a house that’s been paid off – In this case, your creditors might expect a higher repayment amount.

Ultimately, your offer must reflect what creditors would receive if you declared bankruptcy. If it does not, they may reject it.

Can You Keep Your House?

In most cases, yes, as long as you:

Continue making mortgage payments
Can afford both mortgage and proposal payments

Home equity may influence how much you must offer creditors, but it does not automatically result in losing your home. If your combined obligations exceed your budget, selling the property or considering alternative solutions may be necessary.

Can You Keep Your Vehicle?

Generally, yes. A consumer proposal does not cancel a secured car loan. Similar to a home, you can keep your vehicle if:

You continue making loan payments
You can afford both your proposal and car payments

If you surrender the vehicle and the lender sells it for less than the remaining balance, the shortfall becomes unsecured and may be included in your proposal.

What Happens To RRSPs & TFSAs?

One significant benefit of a consumer proposal is asset protection.

RRSPs: Unlike bankruptcy, where recent contributions may be at risk, consumer proposals protect your registered retirement savings in full.
TFSAs: Funds in a Tax-Free Savings Account remain yours. Creditors cannot access them through a consumer proposal.

Additional Reading

Can You Use A Loan To Pay Off Your Consumer Proposal?

Is It Possible To File A Joint Consumer Proposal?

Debt Management Program vs. Consumer Proposal

Final Thoughts

A consumer proposal in Saskatchewan can offer debt relief while allowing you to retain your assets and finances. By consolidating what you owe into one manageable payment and gaining legal protection from creditors, you can move forward with a clear repayment plan. If you’re feeling overwhelmed by debt, speaking with a Licensed Insolvency Trustee can help you determine whether this structured solution is the right fit for your financial recovery.