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How to File a Consumer Proposal in Canada

A consumer proposal could be a fantastic choice for you to think about if you live in Canada and are having trouble paying off your massive debt. An official agreement between you and your creditors called a consumer proposal enables you to settle your debts for less than the entire amount owing. It can assist you in getting your finances back on track and preventing bankruptcy's bad effects.

If you're thinking about submitting a consumer proposal, you might not know where to begin. You can find detailed instructions for filing a consumer proposal in Canada in this article.

You're not alone

Helped with $ 27,000 $ 41,500 $ 35,000 $ 17,000 $ 23,500 $ 46,340 $ 21,000 $ 35,000 $ 26,700 $ 65,500 $ 57,400 $ 17,500 $ 75,500 $ 63,000 $ 35,000 $ 18,500 $ 55,000 $ 85,500 $ 43,000 $ 29,500 $ 27,800 $ 41,200 $ 35,800 $ 85,000 in debt

1 day 3 days 3 days 8 days 7 days 6 days 12 days 9 days 3 days 6 days 1 day 4 days 2 days 1 day 7 days 5 days 8 days 6 days 12 days 16 days 5 days 8 days 2 days 7 days ago in debt in

Orillia Huntsville Peterborough Toronto Brampton Kitchener Mississauga Hamilton Belleville Kingston Cornwall Oshawa Ajax St. Catharines London Sarnia Windsor Sault Ste. Marie Elliot Lake Sudbury North Bay Timmins Thunder Bay Ottawa

Step 1: Find a Licensed Insolvency Trustee

Identifying a licensed insolvency trustee (LIT) is the first step in submitting a consumer proposal. A professional with federal government approval to handle consumer proposals and bankruptcies are known as a LIT.

By looking through the Office of the Superintendent of Bankruptcy’s database of licensed bankruptcy trustees, you can locate one in your area. As they will be directing you through the entire procedure, it is essential that you choose a LIT who is knowledgeable, experienced, and reliable.

 

Step 2: Meet with the Licensed Insolvency Trustee

Scheduling a meeting with a LIT is the next action after finding one. The LIT will examine your financial status and assist you in deciding whether a consumer proposal is the appropriate course of action for you during this appointment.

Also, they will assist you in crafting a proposal that is customized to your particular financial situation. The amount you can afford to pay your creditors each month and the duration of the proposal will be determined throughout this process.

 

Step 3: Draft the Proposal

The next stage is to prepare the proposal once you’ve met with the LIT and decided that it’s the best option for you. Together with you, your LIT will draft a proposal that specifies the monthly payment amount, the duration of the proposal, and any other terms and conditions that may be required.

You and your LIT must both sign the plan before submitting it to your creditors for approval.

 

Step 4: Submit the Proposal to Your Creditors

The proposal must be submitted to your creditors for approval after it has been written and signed. The proposal and a notice of the creditors’ meeting will be sent by your LIT to each and every creditor.

Your creditors may vote on whether or not to accept the plan at the creditors’ meeting. The proposal must be authorized by a majority of your creditors holding at least two-thirds of the total amount of your debts in order for it to be accepted.

 

Step 5: Attend the Creditors’ Meeting

There will be a meeting of your creditors when the proposal has been sent to your creditors. The meeting will provide you and your LIT the chance to discuss your plan with your creditors and address any questions they may have.

The proposal will then go before your creditors for approval or rejection. If the plan is approved, the terms become binding, and you are required to start paying as agreed.

 

Step 6: Make the Payments

You must start sending your LIT the agreed-upon payments as soon as the proposal is approved. Your creditors will get these payments in accordance with the proposal’s guidelines.

In order to avoid the proposal being revoked and your creditors resuming collection actions against you, it is essential that you make all of your payments on schedule.

 

Step 7: Complete the Proposal

The proposal will be finished after all of the payments specified in it have been completed. You will receive a certificate of full performance from your LIT, which attests that all of your commitments under the proposal have been met.

You will be able to start over with a clean slate if your debts are regarded as legally dismissed.

 

Additional Information to Consider

While the procedure for submitting a consumer proposal in Canada may appear simple, there are a few more factors to take into account before choosing a course of action.

It’s important to understand that not all debts are eligible for inclusion in a consumer proposal. Debts that are secured, cannot be included in this list. These debts will still be fully your responsibility to pay off.

If you need more information about how to handle your debt or you don’t know where to start at all – it is best that you get a FREE CONSULTATION first about Debt Relief Program Services in Canada from Expert Finance Counselors to help you know your options. 

 

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I was lost ... single mom... off due to Covid for 3 months .. did what it took to pay bills and look after my kids... and left with nothing but a tonne of debt I could not keep up with 😢. And then ....I met Connie.. Connie gave me my life back. The entire experience was like talking to my mother. She was full of compassion and knowledge and took me under her wing for this entire process. She turned tears into smiles and hope . She reassured me.. and made me feel like it was Going to be ok. I can’t thank her and the team (Paul) enough for helping me through this . I highly recommend National Debt Services to anyone looking for help with their debt . Start living again ❤️. Thanks Connie Jen
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I would just like to thank Suma for really making feel comfortable throughout this entire process. Everyone tells you to watch out for gimmicks, quick fixes, and everything else that comes with Debt. Ive had other companies who had made promises and under delivered. However Suma and her team are quick to provide the right answers and guide everyone in a way towards better credit. She has made it seamless with great communication and availability. I have personally referred her to several of my closest friends and i would recommend her to anyone else looking for consolidation.
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To know more what you can benefit from our Ontario Debt Relief Program, simply try our Debt Consolidation Calculator below and one of our debt specialists will get in touch with you and provide you the best debt relief option that fits your situation.

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Frequently Asked Questions

A Debt Consolidation is a negotiated debt settlement offer made between you and your creditors with the help of a Debt Relief Agency in Ontario. Some key benefits of Debt Consolidation are interest-free program, no upfront fee required, combined monthly payment into one affordable amount, no lawsuits, and many more.

Yes, your assets are safe from creditors. A licensed debt relief agency in Ontario will help you come up with an offer to your creditors that will make sure your assets will be out of the paper.

No, in fact, this is one of the great advantages of a Debt Consolidation Program. All wage garnishment will stop from the day you filed the proposal.

The effect on your credit score is not going to be severe. Your credit score will most probably go to R7 Rating and will remain in your credit report for another 3 years after you completed the program. This means that it will not be permanent and you will still be able to rebuild your credit score.

 

This varies depending on the proposal you will be discussing with the help of a certified debt relief agency. It is also worth noting that debt consolidation cannot exceed more than 5 years.

If a debt is shared, you need to file a joint debt consolidation offer to your creditors. However, in most cases, in which the debts are individually incurred will have no impact on your spouse.

After three missed payments, your debt arrangement with creditors will be broken and you will end up getting chased again for the original debt amount plus interest.

A debt consolidation offer can be paid off earlier if you can. In this way, you receive your “Certificate of Completion” sooner and you can immediately start rebuilding your credit score. 

National Debt Relief Services Ontariois a certified Canadian Debt Relief Agency that offers FREE CONSULTATION to your debt consolidation needs. We value the trust given to us by our clients by making sure your personal information is confidential and private. Our personalized plans are designed to tailor fit your financial capacity. Our specialists will get in touch with you by simply answering a few questions thru the link provided below.

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I've been working with Allicia Macdonald shes very professional and sweet. I cant thank her enough for helping me rebuild my life. Thank you so much.
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Today I had a wonderful experience with Rachael, she was Very professional I was very happy with what we talked about today she was very Caring I highly recommend national debt relief services hundred percent😃
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Brittany was awesome, she explained everything clearly and offered solutions every step of the way. It’s always nice to hear that you could do this or that, I didn’t feel forced to do anything and was able to decide clearly. Thank you 🙏🏼
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This company will work with you and through any difficulties that may arise. They actually hold themselves accountable, how refreshing during troubling economic times.
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I have a great experience working with Suma, she work me through the program, takes her time to explain everything to me about how the program work, what I need to do from start to end of the process. I’m so thankful to God for sending an angel Suma to help relief my debt. It’s a great company to work with. I will recommend this program for anyone in debt like me.
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Joel has made this so simple and effortless he made sure i was well informed and making the right decisions for my situation i would recommend joel at national dept Relief to anyone in hardship with there bills thanks alot joel i really appreciate everything you have done for me thanks!! 5 stars for sure! and its chad ball not my mom lynn lol
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Caroline F. was phenomenal, she was so helpful, understanding and compassionate. Caroline did not make me feel bad for my mistakes, she was supportive and caring, she helped me through this dark time in my life I'm so incredibly happy I crossed paths with her. Thank you Caroline for being so wonderful to me! <3

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