FAQs Consumer Proposal

The trustee will do an assessment to determine what would be a fair offer for both you and your creditors. Usually a proposal will reduce your unsecured debt by 50-70%.

However, each situation is unique and some proposals may reduce your debt even more.

The amount you offer to pay your creditors can be spread out over a maximum of 5 years.

It is also possible to offer a lump sum payment (by selling an asset) rather than spreading the payments over a period of time. This type of proposal starts and finishes quickly.

At the end of your proposal you are legally discharged from your debts including income tax, payday loans, and student loans (if you ceased to be a student seven or more years prior to filing).

It is important to note that some debts, like child support and traffic tickets, must still be paid by you.

The administrator cannot seize or sell your assets in a proposal. However, the value of your assets is considered in determining what you should pay your creditors.

Where you want to keep your house or car you just continue to pay your mortgage/car loan payments under the terms of your agreement with the lender.

If there is equity in the house or car, then the value of that equity is taken into consideration when determining what you should pay.

Yes. Once you have decided the terms of your proposal, it is formally presented to your creditors and they must stop all action against you and deal directly with the trustee.

The creditors vote on whether or not to accept the proposal.

If the majority of your unsecured creditors vote to accept the terms you have offered, it is legally binding on all of them.

You make the agreed payment to the administrator of the proposal who will distribute the money to themselves and your creditors.

If you miss too many payments the proposal is deemed annulled and the protection afforded to you under the proposal is lifted.

If your proposal is annulled, your creditors can start collecting from you again.

For this reason, a consumer proposal is usually only filed if you have a sufficient and stable source of income, otherwise a bankruptcy may be a better alternative.

During your proposal you will need to attend two financial counselling sessions with our office, which we will arrange for you.

You may also be required to attend a meeting with your creditors or an examination under oath – although this rare and unlikely.

When we meet with you, we’ll sit down and discuss your finances.  You’ll have a chance to tell us your concerns and how the debts are affecting you.

At the end of that discussion we will give you our option about what is the best option for you.  Once you’ve got all the facts then you can decide how you’d like to proceed.

A consumer proposal is a good option if:

• You have a stable source of income
• You have the ability to repay a portion of what is owing to your creditors – generally 20-50%
• You have assets that you might lose if you filed for bankruptcy
• You need to stop wage garnishment

If you finished school within seven years of filing a consumer proposal or bankruptcy then the loan is not released (or discharged).

While you’re going through your proposal or bankruptcy you are not required to make payment to your student loans (but interest may still accrue).

If your student loans survive your proposal or bankruptcy and you are still experiencing financial difficulty, you can apply to the bankruptcy court to get your student loans discharged.

If you would like to learn more about consumer proposals please contact us today. We are eager to help you recover your financials.

No, when you file a consumer proposal you are required to include all unsecured debt and liabilities in the application.

The first step is to call our offices and make an appointment to discuss your finances.

Our phone number is 905‑721‑7506 and we’re open Monday to Friday from 9am to 5pm. There is no cost to speak with a trustee, and we’re happy to answer any questions you may have.