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.
