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Consumer proposals an option to bankruptcy in Canada

Consumer proposals in Canada

Take control of your debt and regain control of your future by filing a consumer proposal. A consumer proposal is a manageable repayment plan you negotiate with your creditors.  There are several key benefits to choosing a consumer proposal to pay off your debt:

  • You can negotiate with creditors to only pay a part of your debt instead of the full amount you owe
  • Interest charges are stopped
  • You will be debt free five years or less (proposal lengths can vary)
  • A proposal is legally binding so harassing calls from creditors and wage garnishments will stop 
  • Consumer proposals include many types of unsecured debt, i.e. money owed without collateral, such as credit cards, lines of credit, bank loans, and taxes
  • You will be able to keep your assets (car, home, etc.)
  • Debts are consolidated into one manageable monthly payment
  • No additional fees are required beyond your agreed-upon monthly payment


Win-win solution for you and your creditors

Consumer proposals are a win-win solution for you and your creditors. While your creditors can recover some, if not all, of the money that is owed to them, you can simultaneously eliminate your debt. As long as the consumer proposal allows creditors to recover more money than other debt solutions, creditors will most likely accept the proposal.

No hidden cost to file a proposal

There are no additional fees. We recognize that the cost of professional help can be worrisome if you are struggling to pay bills and day-to-day expenses. When you make a proposal to creditors, you only pay the consolidated monthly amount that your creditors agreed to and for which you budgeted.

Qualifying for a consumer proposal

Consumer proposals are a good debt solution if you:

  • Are carrying debt between $5,000 to $250,000
  • Have assets (e.g. car, house, RRSP) that you do not want to give up
  • Want relief from accumulating interest
  • Want to repay your debts but just need more time and/or a more reasonable repayment plan
  • Have a spouse (it may even be possible for you and your spouse to file a consumer proposal together, which would increase the amount owing to $500,000)


Check out an example of a consumer proposal.   


Steps in filing a consumer proposal

The thought of making a consumer proposal can be intimidating with all of the legal terminology and steps involved in the consumer proposal process. Your trustee will guide you through the process and take care of many of the steps on your behalf.  

A consumer proposal is just one of the debt help solutions offered by BDO. You can also speak to us about other debt management options, including financial counselling or bankruptcy filing.

For complete information about how a consumer proposal can help you take control of debt contact your local BDO office or request a call.

Call your local office

With over 100 offices, we are located where you need us to be. Call your local office today.

BDO Canada Limited is an affiliate of BDO Canada LLP. BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.
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