Consumer proposals are a government approved program filed through a Licensed Insolvency Trustee that provides debt forgiveness.
In a consumer proposal, an agreement is made to repay unsecured creditors a percentage of the total balance owed. Once the agreement is made, the balance of the debt (many times up to 70%) is forgiven.
The payment of the balance is based upon what you can realistically afford to repay on a monthly basis over a 3 to 5 year period.
The amount is based upon an assessment of your financial situation by the consumer proposal administrator (the trustee).
Consumer proposals give debt relief thereby avoid consumers having to consider filing for bankruptcy.