Consumer Proposal

Find out if you are eligible to write off your unsecured debts*

  • Lower your monthly payments
  • Stop harassing creditor calls
  • Write off debts you can’t afford
  • Takes less than 30 seconds to check
  • Safe, secure and confidential

What is a consumer proposal?

A consumer proposal is a formal agreement between you and your creditors and is a matter of public record under the Bankruptcy and Insolvency Act.

You arrange to pay back part of the debt or debts you owe, in simple, single, manageable monthly repayments; the amount of which is calculated in respect of your income and typical monthly expenditure.

Only a Licensed Insolvency Trustee can create a consumer proposal. It is legally binding and will not last any longer than a 5-year term.

You can only apply for a consumer proposal if your debt is more than $5,000 and less than $250,000.

A consumer proposal is an alternative to filing for bankruptcy and could result in as much as a 70% reduction of your debt without impacting on your assets (e.g., your car or your home).

The benefits of a consumer proposal

No upfront fees

A debt solution provider will offer free advice at your initial consultation. Any management fees associated with your consumer proposal will be included in your new single monthly repayment.

Better budget control

Your new repayment amount will be calculated in line with your income. The repayment amount will be within your budget capabilities, and the total term of repayment will not exceed 5 years.

Single simple payment

You will only ever pay one payment per month, to your proposal administrator, at the agreed amount.

Existing legal actions will cease

Your proposal administrator will manage all communication with your creditors. Any harassing phone calls and personal visits from your creditors will also stop, in line with consumer proposal regulations.

It’s legal and binding

The consumer proposal is a legal solution, and once agreed by your creditors they have to conform to all the rules of the agreement.

You will be free of your debt on completion

On completion of the final payment, as dictated by your agreement, you will be cleared of all the inclusive debts and be formally discharged.

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  • Your debt repayments are calculated to be an amount you can realistically afford to pay
  • Any interest on your loans will be frozen, preventing additional debt accumulating
  • Your assets, including your home, car and wages, are protected
  • Part of your debt amounts may be written off


  • You have to go through a court process
  • The proposal will be on public record
  • Trustees are required to pay your creditors as much as possible
  • You may be forced to pay back 100% of your debt
  • You may be forced to file for bankruptcy, where you will have to forfeit all non-exempt assets

What debts can be included in a consumer proposal?

You can include any unsecured debts in a consumer proposal.

Unsecured debts aren’t backed or secured by an asset or trustee. For example, a mortgage loan is secured by the property, which could be sold to cover costs if the debtor fails to make their mortgage repayments.

Typical unsecured debts appropriate for a consumer proposal are:

  • Credit cards
  • Personal loans
  • Payday loans
  • Income taxes
  • Department store credit
  • Bank overdraft fees

You may be entitled to include your student loan debt if you have been out of school for over 7 years.

A debt expert or proposal administrator will confirm which debts you can and can’t include.

The consumer proposal process

1. Discuss your options with a licensed professional

An initial discussion will confirm that a consumer proposal is the best solution for your situation. You will be expected to reveal all of your financial information, including your income, each of your debts, your monthly expenses, and who you owe money to.

2. Your consumer proposal is prepared and presented

A Licensed Insolvency Trustee will draw up your proposal and submit it to your creditors. Your proposal will outline the amount of debt you intend to repay and how your monthly repayments and total repayment term have been calculated.

Once your proposal has been filed with the court, your creditors have 45 days to consider the action. Any interest on the debts will cease to accumulate, and you will be protected from legal action by your creditors.

3. Your creditors accept your proposal

Your creditors may wish to call a meeting to discuss the arrangements, but it isn’t mandatory. Only a creditor who holds at least 25% of your debt can call a meeting, and the meeting must be held within 21 days of the proposal being filed.

Your creditors vote whether to accept your proposal or not and if a 51% majority is reached, the proposal is accepted. The court will approve the proposal, and you will then begin your repayment plan.

4. You must attend credit counselling sessions

Under the guidelines of consumer proposal legislation, you must attend 2 credit counselling sessions to help you understand and be better equipped to manage your finances in future. If you fail to attend the sessions, your debt will not be discharged.

5. You complete the term, and your debt is dismissed

Once your final payment has been paid, at the end of your repayment term, and you have fulfilled each of the obligations set out by the consumer proposal, your Licensed Insolvency Trustee will file the final paperwork, and you will be released from your debt. You may also be provided with information and resources to help you rebuild your credit and manage your finances in the future.

Find out if you qualify

Arrange a call with one of our team to find out if you qualify for debt help

Is a consumer proposal right for you?

A consumer proposal could be your best option if:

  • You need relief from unsecured debts
  • Have assets that you would like to protect
  • Your income is sufficient so that you can make regular payments towards clearing your total debt amount
  • You are willing to repay as much as you can afford
  • You want to avoid bankruptcy
  • You work in a profession that requires you to disclose if you have become bankrupt

To be sure that a consumer proposal is the right choice of debt relief or debt removal for you, you should always talk to a credit counsellor or debt relief professional. They will outline all of your options, the possible outcomes, and which one they believe is the best option for your specific and unique situation.

How we can help you with your debt?

You’re on your way to resolving your debt problems, this is what will happen next.

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Fill out the form and arrange a call back with one of our debt advisors.
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We will then run through all of the options available to you and advise you on which is the best option for you
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We will then help you put the debt solution in place that will help you get back on track

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Consumer Proposal