What Are Your Benefits When Filing A Consumer Proposal

Graeme Whitehead1. Your debts are significantly reduced. Depending on your financial situation, with a consumer proposal you can end up paying as little as 30% of what you owe, in full settlement.

2. You can protect your assets from your creditors. The assets that you protect include your house, your vehicle and any RRSPs or RESPs. When evaluating solutions to manage your debt, protecting your assets should be your main objective. If you lose your own assets, you will have to start rebuilding your life all over again and retirement planning becomes significantly more difficult

3. A Consumer Proposal is affordable . The amount that you offer to pay your creditors is determined by your particular financial situation. Plus, your proposal can be paid over a maximum of 60 months. This makes it possible to build your debt repayments into your monthly budget so that you can ensure that you can make the payments and be debt free after the 60 month period.

4. All legal actions against you stop. When your proposal is accepted, you are protected from most legal actions (such as wage garnishments) by the government regulation that control Consumer Proposals. This means that your creditors will be obligated to cease and desist all legal action. Many of the other debt reduction options do not offer this benefit which means that, with other debts of debt management, you will need to negotiate with each creditor individually.

5. When your proposal is accepted, we deal with your creditors. This means that we will advise them of your situation and inform them that all future dealings must be with us, as your Consumer Proposal Administrators in Hamilton. This means that they cannot call you to attempt to collect their debts. This protection remains as long as you continue to make the monthly payments outlined by your proposal.

6. Assuming you can afford the monthly payments, a consumer proposal is a better option than bankruptcy. In fact, a consumer proposal is better for both creditors and debtors. This is why consumer proposals are being used by more and more people in Ontario today.


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filing a consumer proposal

The portion climbed to 33 per cent in the 12-month period ending April 30, 2011, compared with 22 per cent at the end of September, 2009. In the months leading up to the recession, the number hovered around 21 per cent.

“The changes to the Act make a consumer proposal more attractive than what it was before,” said Andy Fisher, a bankruptcy trustee at A. Farber & Partners Inc. .. read more here




consumer proposal goverment of canada



129. (1) For the purposes of paragraph 66.12(6)(b) of the Act, the fees and expenses of the administrator of a consumer proposal that must be provided for in a consumer proposal are as follows:
(a) $750, payable on filing a copy of the consumer proposal with the official receiver; … read more here




superintendent of bankruptcy in Canada

 What is a consumer proposal?

Administered by a bankruptcy trustee, a consumer proposal is a formal, legally binding process where the trustee works with you to develop a “proposal”: an offer to pay creditors a percentage of what you owe, or extend the time you have to pay your debts, or both. A consumer proposal cannot exceed five years. … read more here


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