Understanding how creditors approve a consumer proposal helps you feel confident and prepared before you file.
Creditors review every proposal to decide whether it offers a better return than they would receive if you filed for bankruptcy.
When the numbers make sense and the plan is affordable, most proposals are accepted because creditors prefer a predictable repayment over the uncertainty of collections or legal action.
Creditors approach proposals in a practical and financial way. They are not judging you personally; they are simply comparing outcomes.
A proposal is approved when the creditor sees that:
In most cases, creditors prefer proposals because the outcome is clear, stable, and more cost-effective than collections or legal action.
A consumer proposal is designed to benefit both you and your creditors. Creditors want stability, and a proposal gives them a guaranteed repayment—usually more than they would recover otherwise.
Approval is especially likely when:
• the payment fits your budget,
• your debt level is reasonable for proposal terms,
• the offer aligns with what creditors typically expect,
• and your trustee has experience negotiating strong proposals.
National creditors such as banks, credit card companies, and finance lenders approve thousands of proposals each year because they know it produces predictable repayment.
Once your proposal is filed, creditors have 45 days to review the offer.
They can request additional information, ask questions, or simply vote on the proposal. Approval requires that the majority of voting creditors (by dollar value) say yes.
If one large creditor votes in favour, approval is almost guaranteed.
Many proposals are accepted without delays because the math is straightforward and trustees prepare offers that fall within expected guidelines.
In some cases, creditors suggest small adjustments. These requests are normal and may include:
Your trustee will review every request with you and only agree to adjustments you can genuinely afford. The goal is a proposal that works long term—not short-term pressure.
Once the proposal is accepted, interest stops, collection actions end, and you begin making your agreed monthly payment.
Your creditors are legally bound by the terms and cannot change their mind later. This gives you certainty and allows you to focus on rebuilding your finances one payment at a time.
This consumer proposal calculator shows an approximate of how much you could save.
If you’re feeling overwhelmed by debt and not sure where to start, the best thing you can do is talk to someone who understands.
Call now and speak directly with me — Kelly Dey — for clear, honest advice that’s tailored to your situation. There’s no pressure and no judgment. We’ll look at your options together and create a plan that helps you breathe again. Getting started is easier than you think, and one simple conversation can put you back in control of your money and your life.
Let’s take that first step today, call 905-721-7506.
A. Creditors look at whether the proposal offers them a better financial result than bankruptcy.
They review your income, expenses, debt level, and repayment ability to make sure the plan is realistic. If the offer is fair, stable, and prepared by an experienced trustee, approval is very likely.
A. It’s rare. Creditors may request changes, but outright rejection usually happens only when the offer is far below what they would receive in bankruptcy.
Your trustee prevents this by structuring the proposal according to industry standards and creditor expectations.
A. This can happen, but it does not mean the proposal will fail.
Your trustee reviews the request with you and negotiates an adjustment only if it’s affordable. Creditors typically accept small changes that strengthen the proposal without causing financial hardship.
A. Creditors have 45 days to vote, but many vote sooner.
Some approve within a week. Most proposals go through without delay, especially when the offer is reasonable and the trustee has experience working with that creditor.
A. No. Once the proposal is filed, creditors are legally required to stop all collections.
This includes calls, letters, lawsuits, wage garnishments, and bank actions—even before the proposal is approved.
Insolvency Trustee – Kelly Dey
If you’re feeling weighed down by money or debt issues, give me a call at 905-721-7506 and lets just have conversation.
Table of Contents
John A.
4 days ago
★★★★★ The trustee explained how creditors approve proposals, and everything went exactly as described. My plan was accepted with no issues.
Sophie L.
1 week ago
★★★★★ I was nervous creditors would say no. They didn’t. The proposal was approved, and now I have one affordable payment.
Marco F.
2 weeks ago
★★★★★ Creditor approval scared me, but the process was simple and quick. The team knew exactly how to structure the offer.
Claire W.
3 weeks ago
★★★★★ I felt so relieved once the creditors accepted the proposal. Everything was handled professionally, and the plan fit my budget.
Peter G.
1 month ago
★★★★★ The approval came through fast, and my payments dropped by more than half. Excellent service.
Rise Above Your Debt!
Call 905-721-7506
