Você está na página 1de 2



A Consumer Proposal is a settlement with creditors. It is a debtors proposal to the creditors, where a
negotiation takes place over the terms of the repayment and the amount of debt write off.

It is a formal procedure governed by the Bankruptcy and Insolvency Act and is available to individuals whose
total debts do not exceed $250 000, not including debts secured by their principal residence. The Consumer
Proposal negotiations are undertaken by a trustee in bankruptcy.

Many factors effect the outcome of the negotiations: employment situation, debt amount, assets owned by
the debtor etc. Generally 50% -80% of the unsecured debt can be written off, and the remaining balance is
spread over a 3-5 year time period, to be paid off in monthly installments. The advantages of a consumer
proposal are that the debtor can retain all of their assets, actions against them by unsecured creditors, such
as wage garnishments, will be stopped and they can solve their debt problems without having to declare

There are a number of steps taken when filing a consumer proposal:

1. The debtor has to find a qualified company that works with trustees or a trustee to administer the
application and represent them before the creditors.

2. The trustee will prepare the proposal along with the debtors financial assessment and causes of
financial difficulty.

3. The trustee will file the application and at that time the debtor will stop making payments to the
creditors included in the proposal.

4. The creditors have forty five days to accept or reject the debtors proposal. In some cases negotiation
can take place to satisfy the creditors demands as well as address debtors financial difficulty.

5. Once the proposal is accepted the debtor has to fulfill all the obligations outlined.(make a lump sum
payment or pay installments for 36/60 months, etc.)

6. When the debtor meets the conditions of the proposal in full, they will be legally released from the
debts included in the proposal.

Consumer Proposal is a preferred method for settling debts when facing financial hardship but at the same
time avoiding bankruptcy. The debtor and the creditors work together to reach an agreement that is
satisfactory to all parties.
Usually the credit rating of the debtor can be restored in few years time and the credit history record will be
deleted permanently six years from the date of filing.

This article was written for general educational purposes. It does not constitute legal advice of any kind. We
do not provide any guarantee for the content, as the regulations change quite frequently. Please contact us
directly or consult a qualified agency for legal advise.

Your Debt Management Consultants,