Is a Consumer Proposal Right for You?

If you’re struggling with debt, you may be wondering what options are available to help you regain control of your finances. One option that you might consider is a consumer proposal. This legal process allows you to negotiate a settlement with your creditors and pay off your debts over a period of time, providing debt relief.

Benefits of a Consumer Proposal

One of the main benefits of a consumer proposal is that it allows you to avoid bankruptcy alternatives. Bankruptcy can have serious consequences, including the loss of assets and damage to your credit score. A consumer proposal, on the other hand, allows you to keep your assets and avoid the negative impact on your credit score. This can help with credit score improvement. Another benefit is that a consumer proposal can help you reduce your debt. In most cases, you’ll only have to pay a portion of what you owe, which can be a significant relief if you’re struggling to make ends meet. This is a form of debt reduction that can help you get back on track with your finances.

Eligibility Criteria

Not everyone is eligible for a consumer proposal. To qualify, you must have at least $1,000 in unsecured debt and be unable to meet your payment obligations as they become due. You must also be able to make regular payments towards the proposal and have a source of income. If you’re struggling with multiple debts, debt consolidation or debt management might also be options to consider.

Getting Started with a consumer proposal

If you think a consumer proposal might be right for you, the first step is to contact a licensed insolvency trustee. They will review your financial situation and help you determine if a consumer proposal or another form of financial restructuring is the best option for you. They can also provide guidance on debt repayment plans, debt settlement, debt forgiveness, and credit counseling. Once your proposal is accepted, you’ll make regular payments to the trustee, who will distribute the funds to your creditors. This is a form of financial rehabilitation that can help you regain control of your finances.


A consumer proposal can be a great option for those struggling with debt. It allows you to avoid bankruptcy, keep your assets, and reduce your debt. If you’re considering a consumer proposal, be sure to speak with a licensed insolvency trustee to determine if it’s the right option for you. They can provide the guidance you need to get back on track with your finances.