What is it?

A consumer proposal consists of modifying your obligations to your creditors by offering to make lower monthly payments over a longer period of time. Alternatively, you could also offer to repay your creditors only part of what you owe them.

It is also possible to submit a joint proposal. This situation occurs when certain consumer debtors (for example, a husband and wife) who have a close financial relationship submit several agreements so that they can be dealt as one. However, a proposal can be jointly submitted only if the consumer debtors' total amount owed does not exceed $250,000 per person, or any other amount indicated.

Who can request a consumer proposal?

Any individual who is insolvent (including a bankrupt person) and who has debts not exceeding $250,000 (excluding a mortgage on the principal residence) may make a consumer proposal. In general, creditors appreciate the fact that you are willing to make efforts to repay them, at least in part.

In most cases, it will be easier to rebuild your credit rating if you choose a consumer proposal. You should also bear in mind that this option will be better regarded by your creditors than a bankruptcy. In addition, it will enable you to keep all your belongings. Our team will also provide you with the necessary help to acquire good budget management habits.

Also note that your unsecured creditors (such as credit cards and personal loans) will not be able to seize your property or wages (except at the time of the administrator's withdrawal, rejection, cancellation or discharge before the proposal is fulfilled in its entirety).

However, creditors will be able to continue to recover debts that would not be extinguished by an order of discharge if you had opted for bankruptcy (unless the order explicitly provides for a compromise with regard to creditors and they vote in favor of this option).