Consumer Proposals

What is a Consumer Proposal?

A Consumer Proposal is the #1 alternative to filing bankruptcy in Canada.  Latest statistics show that more and more Canadians and residents of Cambridge are turning to a Consumer Proposal as a better option for dealing with their debts.

The Technical side of a Consumer Proposal

A Consumer Proposal is a legal procedure available to Canadian’s who are in financial difficulty but still have the ability to be able to pay back at least a portion of their debts.

Becuase a Consumer Proposal is governed by federal law and is a legal process, it can only be filed by contacting a licenced trustee who is an administrator of Consumer Proposals.

You’ll need to meet with a trustee who will first discuss with you all your available options.  If a proposal is right for you, the trustee will help you to work out a payment plan that is suited for you and will then present that plan to your creditors.

If your proposal is accepted (and it does not need to be accepted by all your creditors – only a 51% majority is required), then it becomes a legally binding settlement on your unsecured debts.

A proposal is available if you can’t get help from lenders (such as a consolidation loan) and you can prove you’re insolvent (you can’t pay your bills on time).

As long as the proposal does not exceed a repayment term of 5 years, only your imagination restricts how creative you’d like the proposal to be during that time.

How is it different to a Bankruptcy?


The practical side of a Consumer Proposal

Imagine what it would feel like to have a few $’s left over at the end of each month and imagine not having to listen to the collection phone calls everyday or the threat of legal action.  That’s the freedom a Consumer Proposal will provide.

The fact that all your debts can be combined into one consolidated payment makes it affordable and easier to budget.

What does it mean to “only pay back a portion of your debt”? – Exactly what it sounds like.  In a Consumer Proposal, you don’t have to pay all your debt back, only a portion.

For details on the cost of filing a proposal, watch video below or read our post.

If it sounds too good to be true, consider this – The creditors are likely to accept a proposal from you becuase as much as you might not want to file a personal bankruptcy, they don’t want you to either.  In most cases, they’d rather get some of the debt back than none of it.

You can find out more detailed information about a Consumer Proposal in a number of ways.

  1. Contact me today by calling (519) 622 3773 or email me
  2. Visit our Consumer Proposal resource center at our main Hoyes Michalos & Associates website
  3. Find more information on the process of filing a proposal by visiting our proposal process website.