Consumer Proposal

Repay a percentage of your total debts through a manageable monthly payment.

What is a consumer proposal?

A consumer proposal is a legally binding agreement between you and your creditors that allows you to pay a portion of your debts, often as little as 30%, through a single, manageable, monthly payment.

A consumer proposal can only be filed with a federally regulated Licensed Insolvency Trustee, like A. Fisher & Associates, and could reduce your total debts by as much as 70%.

An alternative to bankruptcy, a consumer proposal allows you to keep all your assets, including your home and vehicles. It also stops harassing phone calls, wage garnishments, and lawsuits from creditors, and once it is completed, you will be debt free.

What debts can be included in a consumer proposal?

You can eliminate most unsecured debts in a consumer proposal.

Typical unsecured debts that can be included in a consumer proposal are:

  • Credit cards
  • Bank loans, overdraft accounts and unsecured lines of credit
  • Payday loans
  • Taxes
  • Personal loans
  • Student loan debt – with certain restrictions
Consumer Proposal
What debts can't be included in a consumer proposal?

What debts can’t be included in a consumer proposal?

Although a consumer proposal is a positive way to reduce and eliminate your unsecured debts, there are certain debts that can’t be eliminated through a consumer proposal, including:

  • Fines or penalties imposed by a Court
  • Unpaid alimony or child support
  • Debts that arose as the result of fraud
  • Certain student loan debts

You should also note that secured debts – debts guaranteed by an asset, such as a mortgage on your house – can’t be eliminated in a consumer proposal. If you enter a consumer proposal you have the option of continuing payments to secured creditors or surrendering the asset.

What are the benefits of a consumer proposal?

Affordable monthly payments

Affordable monthly payments

A consumer proposal allows you to consolidate your debts into a single payment each month. The amount you pay will be based on what you can afford.

Protection from creditors

Protection from creditors

Consumer proposals protect you from creditors – they can’t call you, collect the debt, garnish your wages, or even begin legal action against you.

Interest rates frozen

Interest rates frozen

Entering a consumer proposal freezes any interest and charges on your debts, making them easier to repay.

No bankruptcy

No bankruptcy

A consumer proposal offers you debt relief and a pathway to a debt-free life without having to file for bankruptcy and lose valuable assets like your home or car.

Up to 70% of debt write off

Up to 70% of debt write off

As long as you make your affordable monthly payments, your creditors will agree to write off up to 70% of your debts at the end of your arrangement.

Debt free on completion

Debt free on completion

Once your consumer proposal is completed, all of the unsecured debts included in the arrangement will be eliminated, allowing you to make a fresh start.

How do I find out about debt relief?

Is a consumer proposal right for you?

A consumer proposal could be the best solution to your financial situation if:

  • You are seeking relief from unsecured debts
  • You would like to avoid bankruptcy
  • You have sufficient cash flow to make regular monthly payments towards what you owe

Living with debt can be a stressful and isolating experience. However, the most important thing to remember is that you’re not alone.

Our expert debt solution advisors are on hand to help you find the best solution to your financial problems.

Book a consultation and rebuild your financial life