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Consumer Proposals

Consumer proposals should always be considered before you decide that filing for bankruptcy is your only option. Consumer proposals are an effective way of managing a serious financial problem, your debts will be controlled and reduced and you’ll make manageable monthly payments. Unlike bankruptcy, you’ll still have to pay back parts of your debt. The point of a consumer proposal is to work with your creditors to reduce your debts so that you can pay them back in a timely manner and become debt free. Consumer proposals are one of the most effect ways of regaining control over your finances, you’ll learn how to better manage your money and finally start the debt free life you’ve always wanted.

What to Expect When You File for a Consumer Proposal

When you file a consumer proposal you’ll work closely with a debt relief specialist who will deal with your creditors, file your paper work and help you ever step of the way. Entering a legal proceeding without any idea of what might happen is a scary thing, especially when your money is involved. Here are a few things you can expect once you’ve filed for a consumer proposal.

  1. The majority of people see their wage garnishment stop immediately
  2. Interest on your debts stops accumulating the day you file
  3. By law, debt collectors and creditors can no long contact and harass you
  4. You won’t be in jeopardy of losing any of your asserts
  5. You’ll have a maximum of 5 years to repay the agree upon portion of your debts

Are There Any Qualifications?

Unfortunately consumer proposals aren’t for everyone, everyone’s financial situation is different and therefore not everyone can benefit from the same help. If any of the issues below describe your current financial situation then you might want to consider a consumer proposal as a viable solution.

  • You have more than $5,000 worth of unsecured debt but no more than $250,000 (this does not include your mortgage)
  • You’re currently employed and can afford to make payments each month
  • You cannot afford to pay off your debts in full and interest
  • Most other debt relief solutions are not an options for you, including a debt consolidation loan
  • Bankruptcy is absolutely not an option because:
    • Your income is high enough that you’d be subject to surplus income payments
    • You want to keep all of your assets

Benefits of Filing a Consumer Proposal

While it’s understandable that seeking any type of debt relief is a hard choice you should understand that filing a consumer proposal can be beneficial to both you and your finances.

  • When you file a consumer proposal your assets are not at risk, you’ll be able to keep your car, your home and any other assets you might have.
  • You won’t have to worry about surplus income payments; once your proposal has been agreed upon your payments will stay the same, even if your income should increase.
  • Your credit score will not be as severely affected as it would be if you filed for a personal bankruptcy.
  • A consumer proposal allows you to feel in control of your debts.

Try to look at filing for a consumer proposal as a necessary step towards a better financial future. Once you file your consumer proposal you’ll be on your way to regaining control over your money and becoming debt free.

Get the Relief You Need Now!

If your debts are starting to affect your life then you need to consider getting help as soon as possible, a consumer proposal can prove the relief you need.


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.