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

What are the disadvantages of a Consumer Proposal?

There are 4 main disadvantages of a Consumer Proposal.

  1. More expensive than bankruptcy.
  2. Often a longer process as compared to bankruptcy.
  3. 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)
  4. There is no guarantee creditors will accept your initial proposal offer.