A consumer proposal is a formal debt settlement option legislated under the Bankruptcy and Insolvency Act and filed with a licensed trustee in bankruptcy.
A consumer proposal:
- prevents creditor action including collection activity and wage garnishments
- stops all interest charges
- allows you to compromise your total debt
A Consumer Proposal is the right option if you:
- have a consistent source of income
- are able to make monthly payments
- are not able to make the required monthly payments on current debt
Advantages of a Consumer Proposal:
- a way to avoid bankruptcy
- consolidates debt in to one monthly payment
- compromises the amount you owe
- allows for easier personal budgeting
- protects assets from creditors
- does not require you to submit monthly income reports
Consumer Proposal is different than filing personal Bankruptcy because:
- It is a debt settlement option that allows you to compromise your personal debts
- You make affordable monthly payments for up to 60 months
- Pay back a percentage of your personal debt
- Results in a R7 credit rating which remains on your credit report for 3 years after your consumer proposal is paid in full
