Q1: What is a consumer proposal?
A consumer proposal is a formal offer to your creditors, arranged through a Licensed Insolvency Trustee, that allows you to repay part of what you owe over a fixed period of time.
Q2: How is a consumer proposal different from bankruptcy?
A proposal often allows you to keep more assets, may affect your credit rating less severely, and usually results in one lower monthly payment compared to bankruptcy.
Q3: Who qualifies for a consumer proposal?
You may qualify if your debts are less than $250,000 (excluding your mortgage) and you have a steady income to make the monthly payments.
Q4: How long does a consumer proposal last?
Most last between 3 and 5 years, though you can pay it off faster if your situation improves.
Q5: What happens if my creditors don’t accept the proposal?
If most creditors reject it, you can revise the terms or consider other options such as bankruptcy.
Q6: Where can I get help with a consumer proposal in Manitoba or Western Canada?
You can speak with a Licensed Insolvency Trustee serving clients across Winnipeg, Brandon, and Steinbach in Manitoba, as well as Calgary and Saskatoon across Western Canada. They can review your financial situation and help determine whether a consumer proposal or other debt solution is the right option for you.
