Consumer Proposals

Consumer Proposals offer a win-win solution for you and your creditors.

A consumer proposal might be the right option for you if the total outstanding balance on your unsecured debts does not exceed $250,000.

A consumer proposal is a formal, legally binding process, whereby we would work with you to develop a proposal to pay a percentage of your outstanding debts to your creditors.


There are several benefits to filing a consumer proposal:

  1. Taking a step to regaining control of your life and financial situation;
  2. Stop harassing creditor phone calls;
  3. Freeze interest payments;
  4. Stops legal actions;
  5. Releases you from your debt obligations;
  6. Stops any garnishments against your wages;
  7. Provides a cost-effective debt solution;

Debts that cannot be included in a consumer proposal:

  1. Trust funds, such as HST or Source Deductions;
  2. Secured debts, such as mortgages and car loans;
  3. Student loans, if the loans are less than 7 years old;
  4. Fines or penalties imposed by court;
  5. Debts arising from fraud.

Effect on credit rating:

A consumer proposal reflects as an R7 on your credit report for 3 years after receiving the Certificate of Completion, which is normally received after making the final payment on the proposal.

For an in-depth look into consumer proposals in Canada, read this blog titled:  What is a consumer proposal?