A consumer proposal for seniors or retirees is one of the safest ways to manage debt when you are living on a fixed income.

Many older Canadians rely on CPP, OAS, pensions, or savings, and rising debt payments can quickly overwhelm a limited monthly budget. A proposal reduces what you owe, stops interest, and gives seniors and retirees a predictable payment they can comfortably afford.

Debt in retirement can become unmanageable quickly.

When income is fixed, even small increases in interest or living costs can create financial pressure.

consumer proposals for seniors

Seniors and retirees face added challenges when:

• Income drops after retirement and monthly debt payments stay the same.
• Unexpected medical, dental, or home repair bills force the use of credit.
• Interest on credit cards and lines of credit consumes more of a fixed budget.
• Inflation raises daily living costs, leaving less money for payments.
• Collection agencies contact you even when you cannot increase payments.

A consumer proposal for seniors or retirees creates a clear, affordable path out of debt without touching your home or pensions.

Benefits for Seniors and Retirees

A proposal helps older Canadians regain stability by lowering debt and protecting income.

It works well for seniors and retirees because:

• Debts are reduced significantly, often to about 30% of the total amount.
• All interest stops immediately, so balances no longer grow.
• Pension income is protected and cannot be seized by unsecured creditors.
• Payments stay fixed for up to five years, making budgeting easier.
• Legal protection begins right away through a stay of proceedings.

This gives seniors predictable monthly costs and long-term financial relief.

Why Seniors Choose a Proposal Over Bankruptcy

Many retirees compare filing bankruptcy with a proposal. A consumer proposal for seniors or retirees is often the better choice because:

• You keep your assets, including your home equity, car, and savings.
• Your privacy is maintained, as proposals are rarely listed publicly.
• Your payments are based on budget rather than asset value.
• You avoid the added reporting that bankruptcy requires.
• You can repay less than the full debt without losing property.

This makes proposals a more comfortable and stable option for older Canadians.

Debts Seniors Can Include

Most unsecured debts can be rolled into the proposal, simplifying finances and reducing stress.

Seniors and retirees can include the following in a proposal:

• Credit cards with high interest rates.
• Lines of credit used for monthly expenses.
• Tax debt and CRA balances.
• Old loans from banks or finance companies.
• Medical or dental bills placed on credit.

Combining everything into one payment makes retirement more affordable.

When a Proposal Is the Right Choice

A consumer proposal for seniors or retirees is often recommended when:

• You cannot keep up with payments on a fixed income.
• Interest charges keep rising, even while making payments.
• Collection agencies are calling or threatening action.
• You are using credit to pay for essentials like groceries or utilities.
• You want debt relief without losing assets or retirement savings.

A proposal provides protection, predictability, and peace of mind.

This consumer proposal calculator shows an approximate of how much you could save.