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A consumer proposal and debt negotiations are an excellent way to get a fresh start. They allow you to settle your debts while keeping your assets and avoiding bankruptcy.

A Consumer proposal will keep you out of the reins of bankruptcy, which is usually thought of as a far harsher resolution. However, it can’t be completely counted out because there are scenarios when it is the best way out. A Consumer proposal can assist you to build affordable monthly payments for a minimum of five years. These monthly payments are going to be distributed among the creditors until the debt is over. The best part about the consumer proposal process is that all interests are frozen once the creditors agree to the proposed debt repayment.

With an honest proposal sent forward, you’ll relish immediate debt relief. Before we settle on a consumer proposal, we are going to compare all the potential debt relief choices. The Bankruptcy on the opposite hand is typically thought of as a final resort. Let’s read about a few things to understand about consumer proposal –

If you are pondering over filing a consumer proposal there are 5 things you ought to know –

  • A Consumer Proposal is Court Approved – Once it’s filed, assortment activities against you and any wage garnishments stop. If you agitate your debt through alternative ways like credit counselling or debt settlement, the creditors can continue court actions.
  • A Bankruptcy Trustee should administer a Consumer Proposal – Consumer proposals are governed under the Bankruptcy and Insolvency Act. Only an authorized credit agency can file your consumer proposal. There is no need to spend money dealing with a debt consultant first, all they will do is charge you a lot of money and then send you to a trustee to file your consumer proposal.
  • The Fees are Included in the Consumer Proposal – the monthly payment you make includes all the fees, taxes and disbursements required to file the consumer proposal. These charges are regulated by the Bankruptcy and Insolvency Act.
  • A Consumer Proposal must include all Non-Secured Debts – You can’t choose the creditors you wish to include in your consumer proposal. It should include all your unsecured debts. Your secured creditors are also notified, but if you are keeping the asset, you just need to continue your regular payments.
  • A Consumer Proposal IS NOT Bankruptcy – Even though a consumer proposal is looked after by a trustee, it is not bankruptcy. Unlike bankruptcy, you are not penalized if your income increases and you don’t lose control of your assets.


For your consumer proposal to be legal, it should be filed by a licensed Insolvency Trustee such as Credit 720. We are licensed and certified with the relevant authorities in the industry. You cannot file a consumer proposal with any kind of agency that is not licensed. Our credit counsellors will meet with you to provide Personal Debt Counselling Services as often as you need to explain the various processes involved and everything you need to know about advantages Of Consumer Proposal in Calgary and other services like Debt Consolidation in Calgary. Contact us for consumer proposal service in Calgary if you are considering making a proposal to your creditors.