Consumer Proposal
A proposal is an offer to your creditors to either; pay them over a longer period of time or pay them less than the total amount owed.
For example if your debt consists of $30,000 worth of credit cards and you cannot afford the large monthly payments, you could make an offer such as;
- $300 per month for 3 years, or
- $300 a month for 2 years plus the proceeds from the sale of an asset, if applicable.
The process is flexible and creditors will generally be prepared to accept a reasonable offer once they understand your circumstances.
A majority of your creditors must approve the offer. The consent of all your creditors is not required. This is a Federal Government regulated process which is binding on all creditors provided a majority are in favor of the offer. It can only be presented by a Licensed Trustee in Bankruptcy, not a Credit Counsellor. We have a very good success rate with the proposals we have drafted.
To qualify to file a Consumer Proposal your total debt cannot exceed $250,000 excluding any mortgages on your principal residence.
We can help you to determine if this is your best option.
Our Trustee is able to advise you which of our options are best suited to your specific circumstances.