What is a Consumer Proposal?

A consumer proposal is a formal, legally binding agreement you make with your unsecured creditors to pay them back when you’re unable to do so in the normal way.It protects you from creditors’ harassing phone calls and legal threats. A Proposal can only be made by a certified trustee. It is designed with your financial situation in mind including the  payment schedule, which is  based on your income, living expenses, and family responsibilities and circumstances .

Consumer proposals contain a variety of terms, but most consist of an offer to make one 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).

You may be able to make a consumer proposal, under which you can 

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  • 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

Who can file a proposal?

Anyone who is unable to meet his/her payment obligations can file a proposal.

  • If your debts are less than $250,000 (not including the mortgage on your primary residence), you will file a proposal.
  • If you have joint debts (less than $500,000 combined) with your spouse or someone else, you can file a joint proposal.
  • If your debts exceed $250,000 (not including your mortgage), you must file a Division I proposal.

Do I need a lawyer?

Generally speaking, no. Only a bankruptcy trustee can legally initiate and process proposal proceedings, so unless your situation is particularly complex, a lawyer won’t be necessary. If circumstances require, however, your bankruptcy trustee can and will work with your choice of counsel.

What will a trustee do for me?

A bankruptcy trustee is an insolvency expert who will:

  • provide a free consultation to determine if, when, and how you should proceed with a consumer proposal
  • explain options other than a consumer proposal, such as consolidation loans, re-mortgaging your home, borrowing from family/friends, budgeting, proposals, and/or selling assets
  • provide you with personalized attention throughout your proceedings
  • deal with creditors on your behalf

How can a consumer proposal benefit me?

A proposal can:

  • relieve the stress of creditors calling and demanding payment;
  • help you reach an agreement with all your creditors at the same time;
  • reduce the total amount you owe;
  • begin repairing your damaged credit rating;
  • prevent further interest charges from accumulating on your existing debt.

Contact Us

We can provide a solution that gets you out of debt and on a path towards financial freedom. On average, at least 50% of the population in Ontario is struggling with their finances. We know that this situation is stressful so we’ll do our best to make sure you’re comfortable.

You can book your free, no obligation consultation online contact form or You can reach us directly at 613.237.5555 or toll free at 1.800.517.9926. . We’re ready to help put your debt problems behind you. Our services are confidential and created for your unique situation.

The professionals at Doyle Salewski are all fully experienced in providing financial management advice such as credit counselling, bankruptcy, consumer proposals, budgeting, debt settlement, and debt consolidation. Our directors are qualified CAIRP estate administrators and counsellors. CAIRP accreditation is available exclusively to estate administrators working within member firms.

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