Consumer Proposal Cost

Consumers are not charged a fee to set up a consumer proposal. There are no additional fees, services to negotiate, or costs to you.

The fee to manage the proposal is taken from the monthly payment sent to the creditors.

In effect the creditors pay the cost.

Usually when a person files for bankruptcy, unsecured creditors receive little or nothing on the debt. Creditors want to receive more in the debt payment than if you filed for bankruptcy.

Each case is different but a proposal will dramatically reduce your debt.

Most people are able to reduce credit card debt and unsecured credit by up to seventy (70) percent more.

The outstanding debt will be reduced to one monthly payment that can be amortised (paid back) over one (1) to five (5) years.

For example;

• total consumer debt before the proposal = 50,000
• monthly payment = $1,800/month

• total consumer debt after the proposal = 15,000
• monthly payment = $300/month

In a consumer proposal your consumer debt is dramatically reduced and you do not lose any assets as you would in a bankruptcy.

★★★★★ We had household repairs and bills that we used our credit cards to pay, with an older house and a fixed pension we soon owed more than we could afford to pay.  The credit card interest kept going up and I looked for help to get us out of debt.  YanchDey were local to us and I went and spoke to Kelly.  We saved about 20,000 dollars and will be out of debt in 3 years, Thanks again P. Vorvis Whitby.

When the trustee and you have come to a decision about what you can reasonably afford to pay on your debts, the trust takes this amount to the creditors to review.

Once the creditors approve the proposal, you make monthly payments to the trustee and the trustee sends the money to the creditors.

The trustee takes a percentage of the amount the creditors receive.  There is no extra payment made by you to the trustee.

For example,

• total consumer debt before the proposal = 50,000
• monthly payment = $1,800/month

• total consumer debt after the proposal = 15,000
• monthly payment = $300/month

The trustee charges the creditors a percentage from the 300 dollars paid to the creditors each month.  There is no additional cost to you.

As licensed insolvency trustees, we help people with consumer proposals, debt solutions, and filing for bankruptcy. We’re in the business of getting people out of debt and we can help you.

A consumer proposal is a legal agreement between a person who owes money to creditors, where the debt can be reduced instead of filing for bankruptcy. Consumer proposals are legal applications administered by a licensed insolvency trustee.

The insolvency trustee acts as a Consumer Proposal Administrator under the office of the Superintendent of Bankruptcy of Canada.  In a consumer proposal the amount owed can be reduced by up to seventy (70%) percent, getting you out of debt in five (5) years or less.