If you’re unable to pay off your debts, you may be able to make a consumer proposal, under which you can
- offer to pay creditors a portion of what you owe
- make a reduced monthly payment
- eliminate accumulating interest charges
- eliminate creditor phone calls and/or legal threats
A consumer proposal
- is a formal agreement you make with your unsecured creditors to pay them back when you’re unable to do so in the normal way
- protects you from creditors’ harassing phone calls and legal threats
- can only be made by a certified trustee
- has a payment schedule based on your income, living expenses, and family responsibilities
Consumer proposals contain a variety of terms, but most consist of an offer to make low monthly payments and/or a lump sum payment, resulting in debt reduction and an end to interest charges. You pay the agreed-upon sum to your trustee, who will in turn distribute the money to your creditor(s). Click here to read our Consumer Proposal FAQs.
To see how proposals compare with other debt-elimination options, enter the total amount of your unsecured debt in our “Debt Reduction Calculator”.
Call one of our professional counsellors today to see if a consumer proposal might be an option for you: in Ottawa, Ontario 613-237-5555; out of town, toll free at 1-800-517-9926; email firstname.lastname@example.org.