- Help Center
- Debt Repayment Options
- Consumer Proposal (debts less than $250,000, excluding principal residence mortgage)
-
Consumer Proposals
-
Personal Bankruptcy
-
Debt Repayment Options
- Do Nothing
- Debt Consolidation Loan
- Informal Agreement with Creditors
- Debt Management Program (DMP) - Offered through Credit Counselling Society
- Orderly Payment of Debts (OPD) - Offered through Money Mentors
- Consumer Proposal (debts less than $250,000, excluding principal residence mortgage)
- Division I Proposal (debts over $250,000, excluding principal residence mortgage)
- Bankruptcy
What are the disadvantages of a Consumer Proposal?
There are 4 main disadvantages of a Consumer Proposal.
- More expensive than bankruptcy.
- Often a longer process as compared to bankruptcy.
- Creditors will drive the proposal terms (Creditors can vote against and request more money to be paid as a condition of their acceptance of the proposal)
- There is no guarantee creditors will accept your initial proposal offer.