What a consumer proposal is, and how it can help
If debt payments have outgrown what you can manage, a consumer proposal is a legal, government-regulated way to reduce what you owe, stop the collection calls, and get a fresh start, without declaring bankruptcy.
The basics
A consumer proposal is a formal agreement, filed through a Licensed Insolvency Trustee, between you and the people you owe. Instead of paying your full unsecured balances, you pay back an agreed, reduced amount, usually spread over up to five years, in one fixed monthly payment.
What it can do for you
- Reduce your debt. You often repay only a portion of what you owe.
- Freeze interest. Interest on the included debts stops accruing.
- Stop collection calls and wage garnishments once it's filed.
- One affordable payment. Everything is combined into a single, predictable monthly amount.
- Keep your assets. Unlike bankruptcy, you generally keep your home and car.
It's not the same as bankruptcy. A consumer proposal is a middle path: more relief than struggling on your own, but far less drastic than declaring bankruptcy.
Is it right for you?
A consumer proposal tends to make sense when you have steady income but your unsecured debts (credit cards, lines of credit, payday loans) have grown beyond what you can realistically repay. It's not the answer for everyone, which is exactly why the first conversation is free and no-obligation.
How to take the first step
Our partners at xdebts.ca help Ontarians explore whether a consumer proposal is the right fit. There's no cost and no pressure to find out, just an honest look at your options.
A word from us: we're a lender, and we'll still tell you plainly, sometimes another loan isn't the answer. If debt is the real problem, dealing with it head-on beats borrowing to stay afloat.