Consumer proposals are a government approved program 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 afford to repay over a 3 to 5 year period.
Consumer proposals give debt relief thereby avoid consumers having to consider filing for bankruptcy.