Review your options to find the debt restructuring plan that is right for you to become debt free.

Weigh the Pros & Cons of Consumer Proposals

You will experience immediate relief from your financial stress upon filing a consumer proposal. Your unsecured creditors must communicate with the Proposal Administrator. You no longer receive telephone calls, monthly statements or collection notices from your unsecured creditors.


You will gain control of your finances. You stop making numerous monthly payments to all your individual unsecured creditors and begin making one single monthly payment that you can afford to your Proposal Administrator.

Advantages of a Consumer Proposal over Bankruptcy

  • Avoid bankruptcy while resolving financial difficulties.
  • Immediately stops existing legal action from unsecured creditors with a "stay of proceedings", including stopping wage garnishments and asset seizures.
  • Immediately protects you from receiving collection calls and new legal action from unsecured creditors including the Canada Revenue Agency ("CRA") for income tax debt and/or GST debt.
  • Requires all unsecured creditors to communicate with the Proposal Administrator instead of you.
  • Interest immediately stops accumulating on your unsecured debt.
  • One affordable monthly payment may be made to your Proposal Administrator instead of multiple payments to individual unsecured creditors.
  • Each monthly payment made to the Proposal Administrator pays your unsecured creditors and the Administrator's fees.
  • No additional costs or payments apply beyond your single monthly payment to the Proposal Administrator.
  • Flexibility is available to make additional payments, increase monthly payments or make a lump sum payment to prepay the consumer proposal without penalty if your financial circumstances improve, the payment of which would reduce the length of the consumer proposal.
  • Permits a director of an incorporated business to maintain his or her position.
  • Prohibits an employer from terminating, laying off, suspending or disciplining an employee on the basis of filing a consumer proposal.
  • Disclosure of your financial situation is not required if you enter into a business transaction.
  • Financial difficulties may be resolved within 90 days by providing a one-time lump sum payment to your Proposal Administrator.

Disadvantages of a Consumer Proposal Compared to Bankruptcy

  • Stable monthly income is required to ensure you can pay the Proposal Administrator consistently.
  • Affordability of payments must be demonstrated through your financial circumstances and monthly household budget.
  • Acceptance of the consumer proposal is subject to a vote by your unsecured creditors.
  • If multiple payment defaults occur, the consumer proposal is annulled (brought to an end). As a result, the rights of unsecured creditors to take legal action would be reinstated and bankruptcy may be your only option.

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consumer proposal

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