1. Help Center
  2. Debt Repayment Options
  3. Consumer Proposal (debts less than $250,000, excluding principal residence mortgage)

What are the advantages of a Consumer Proposal?

There are many advantages to choosing a Consumer Proposal to pay off your debt.

  1. Repayment terms will fit within your budget, your Trustee nor your creditors will set you up to fail.
  2. Binding on all creditors once it is accepted
  3. You have formal creditor protection, creditors cannot commence or continue any action
  4. More flexibility; repayment terms can be set to accommodate your financial situation as well as the use of assets to satisfy proposal terms.
  5. Reflects more positively on credit rating as compared to a bankruptcy
  6. You can include debt owed to Canada Revenue Agency
  7. You can surrender assets back to secured lenders, with any liability compromised in your Proposal.
  8. If you incur new debt while in an ongoing Consumer Proposal, you can file a new Consumer Proposal to include the previous and new debt, subject to Creditor and Court approval.