Our Services

Consumer Proposal

What is a

Consumer Proposal?

A consumer proposal is a unique form of debt relief that allows you to settle the debts for less that you own by making a “deal” with your creditors and incorporating them into a single, manageable monthly payment. This option can be an outstanding one without resorting to personal bankruptcy in Canada.

When filing a consumer proposal, you are making a legal contract with your creditors to pay a portion of the debts to settle them in full. On average, they reduce their total debt by 70% – 80%.
This solution has been popular in Canada to help Canadians with their debt problems because a consumer proposal has guaranteed protection against creditors and freezes any additional interest.

A consumer proposal can be filed for :

someone who has debt ranging from $1,000 to $250,000. Not including mortgages or debts on personal residences.
People with more than $250,000 in debt may still file, but some conditions will apply.
You can virtually pay off all types of debts, including but not limited to student loans, credit card debt, and car loans.

How Does a Consumer
Proposal Work?

Working with a Licensed Insolvency Trustee will find a solution to paying back a portion of the debt, including the accumulation of interest that one can repay, and the rest of the debt will be forgiven by the creditors.

What happens after filing a Consumer proposal?

Your Licensed Insolvency Trustee will essentially take your place and act as your representative in communicating with your creditors and facilitating your Consumer Proposal. Your creditors will be prohibited from charging you additional interest or contacting you for future payments. You will merely make a single proposal payment (often monthly) to your Licensed Insolvency Trustee in substitute of making separate payments to each of your creditors to settle each debt.

There are no additional fees or hidden costs associated with your Consumer Proposal; your payment covers everything, including debt settlement and the services your Licensed Insolvency Trustee provides during the proposal’s duration.

Are Consumer Proposals and Debt Settlement the same?

Consumer Proposal are commonly referred to as Debt Settlements. This can only be file by a Licensed Insolvency Trustee. Formerly know was a Trustee to Bankruptcy. Licensed Insolvency Trustees are the only debt help professionals authorized and endorsed by the Federal and Provincial governments to help consumers manage their debts.

Working with a Licensed Insolvency Trustee ensures you are receiving debt help from a fully qualified, reputable professional and getting the benefits and protection of your consumer rights and transparency throughout the process.

How to Filing a Consumer Proposal In GTA

Consumer Proposal are commonly referred to as Debt Settlements. This can only be file by a Licensed Insolvency Trustee. Formerly know was a Trustee to Bankruptcy. Licensed Insolvency Trustees are the only debt help professionals authorized and endorsed by the Federal and Provincial governments to help consumers manage their debts.
Working with a Licensed Insolvency Trustee ensures you are receiving debt help from a fully qualified, reputable professional and getting the benefits and protection of your consumer rights and transparency throughout the process.

1. Meet with a local GTA Debt Solution representative for “free” debt consultation

We will have a private, one-on-one meeting with you to better understand and evaluate your financial status and go over all of your debt-resolution options. We will collaborate to come up with a payment schedule that suits your needs for the duration of the proposal. We’ll take into account your family size, income, and other pertinent factors to make sure your consumer proposal is feasible and successful right away.

2. Filing the Consumer Proposal

Your creditors have 45 days to consider your Consumer Proposal. Your Consumer Proposal will serve as a “shield” between you and your creditors after it is filed. Interest will be automatically frozen, and any and all attempts to collect payment from you will end right away.

Your consumer proposal is accepted and legally binding on all parties, including creditors who may not have voted in favor of it, if the majority of your creditors (by dollar amount) vote in favor of it. Since consumer proposals will yield a higher return than filing for personal bankruptcy, they have a very high success rate and are nearly always approved by creditors.

You fulfill the terms of your Consumer Proposal as accepted by your creditors

Make your regular (usually monthly) payments to your Licensed Insolvency Trustee for distribution to your creditors. You may pay off your consumer proposal in full at any time, without penalty. Attend two private financial counseling sessions focused on credit improvement tips, budgeting and spending habits, money, and debt management strategies.

3. Completed Consumer Proposal, Achieved Financial Fresh

After your last payment is made, your Licensed Insolvency Trustee will make a final distribution of funds to your creditors and issue you a Certificate of Full Performance. The unpaid balance of the debts included in your Consumer Proposal will be forgiven by your creditors.

Licensed Insolvency Trustees relieve your debt-related stress, allowing you to go forward confidently and debt-free. You deserve a fresh financial start!