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The Truth About Consumer Proposals

If you’re drowning in debt, a consumer proposal might seem like your lifeline. It’s a popular and government-regulated debt relief tool in Canada. Before you commit to years of fixed payments and long-term credit damage, it’s worth exploring your options—especially the legal-based debt settlement approach from Metus Lykos Debt Law Firm.

What is a Consumer Proposal?

A consumer proposal is a legally binding agreement negotiated between you and your creditors, allowing you to pay back a portion of your total debt. It’s filed through a Licensed Insolvency Trustee (LIT) and gives you up to five years to complete your payments. Once accepted, it halts collection calls and wage garnishments.

It’s a solution that works for many—but not all. The structure is rigid, and the long-term impact on your credit score can be significant.

consumer proposal
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Downsides of a Consumer Proposal

Here are some reasons why a consumer proposal might not be the best fit for your financial recovery:

  • Remains on your credit report for up to 8 years
  • Requires fixed monthly payments with no flexibility
  • Publicly recorded in the national insolvency database
  • Licensed Insolvency Trustees are legally bound to serve both you and your creditors

Metus Lykos Offers a Smarter Path

Metus Lykos Debt Law Firm takes a different route. We use legal negotiation to settle your debts without the formal structure of a consumer proposal. This approach is fully confidential and often results in lower total payments.

Our team works exclusively for you. You’ll have legal professionals protecting your rights, negotiating hard on your behalf, and customizing a plan that works with your lifestyle—not against it.

Key Benefits of Metus Lykos’ Approach

Instead of a one-size-fits-all consumer proposal, our method offers:

  • Debt settlements for as little as 20–65% of what you owe
  • No public insolvency record
  • No trustee splitting their loyalty between you and your creditors
  • Legal-only advocacy designed to minimize stress and maximize savings

Faster Financial Recovery

A consumer proposal locks you into a years-long repayment schedule. In contrast, Metus Lykos helps you resolve debt faster and start rebuilding your credit sooner. Because our settlements don’t involve formal insolvency filings, the damage to your credit is often much less severe.

Many of our clients see progress in as little as a few months, not years.

consumer proposal
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Who Should Consider a Consumer Proposal?

For some, a consumer proposal may still be the right move—especially if:

  • You have a stable income to commit to fixed payments
  • You owe more than $10,000 but less than $250,000
  • You prefer to work with a trustee over a legal team

But if you want a more flexible, personalized solution—one that protects your rights and your credit—Metus Lykos could be the better choice.

Make the Right Move for Your Future

Debt doesn’t have to define you. Before you sign off on a consumer proposal, speak with the team at Metus Lykos. We’ll explore your options, answer your questions, and help you take back control—on your terms.

Your solution starts with a conversation. Let’s rewrite your debt story at https://debtlaw.ca.

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