{"id":12251,"date":"2020-08-28T16:15:14","date_gmt":"2020-08-28T16:15:14","guid":{"rendered":"https:\/\/nomoredebts.org\/?page_id=12251"},"modified":"2025-06-20T11:37:40","modified_gmt":"2025-06-20T18:37:40","slug":"consumer-proposal-canada","status":"publish","type":"page","link":"https:\/\/nomoredebts.org\/debt-help\/consumer-proposal-canada","title":{"rendered":"Consumer Proposals in Canada – What to Watch Out For, Filing & Credit"},"content":{"rendered":"

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Consumer Proposals<\/p>\n

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Learn how consumer proposals work, the long-term consequences, and what debts can be included.<\/p>\n

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Important Info on Consumer Proposals in Canada
\nFiling, Credit, Bankruptcy, Debt Relief Options & What to Watch Out For<\/span><\/h1>\n

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One option<\/strong> to consolidate your debts that isn’t a debt consolidation loan is to file a consumer proposal<\/strong>. Under the Bankruptcy and Insolvency Act<\/a>, a consumer proposal is a legal process and a matter of public record between you and your creditors to pay back part of what you owe.<\/p>\n

The amount you repay is largely based on your income and what you own. However, it can typically decrease how much debt you have to repay your creditors by a significant amount.<\/p>\n

When you file a consumer proposal, unlike a debt consolidation loan, it is a legally binding agreement that\u00a0can only<\/strong> be put together and administered by a licensed bankruptcy trustee<\/a> and costs around $1,500 to file.<\/p>\n

You’ll pay an initial setup fee, and if it’s accepted by your creditors and approved by the courts, you’ll have to pay the balance to move forward, most likely in the form of monthly payments. Also, unlike some other debt-relief options, there is a consumer proposal cost.<\/p>\n

In addition to this, the licensed insolvency trustee will take 20% of your future payments as a fee for overseeing and managing your consumer proposal. To be legally binding, the creditors who own the majority of your debt must agree to the proposal. Once they do, you repay the agreed amount over a maximum term of 5 years, and a permanent public record is placed in a searchable online database.<\/p>\n

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More on This Topic<\/h2>\n