Consumer Proposals

1) What is a consumer proposal?

A consumer proposal is a legally binding agreement between a debtor and his creditors that needs to be filed by a licensed Trustee who is called an “Administrator”.

In most cases, you will pay back much less than the full amount, interest free, and over a maximum period of 60 months.

In order to file a consumer proposal there are two main requirements:

  • You must owe less than $250,000 of unsecured debt (excluding the mortgage(s) for the home you live in, the “principal residence”); and
  • You have the ability to fund the proposal payment (monthly / lump-sum).

Want to learn more? Contact us for a free initial consultation and we will review all your options to determine if we can help you get started towards a better financial future.


If you owe more than $250,000 of unsecured debt, you may want to consider a Division 1 proposal. To learn more, please call us and we would be pleased to explain how a Division

1)proposal works.

2) Why should I choose a consumer proposal over a bankruptcy?

The advantages are:

  • You do not need to declare personal bankruptcy;
  • You get to keep your assets;
  • You stop all additional interest charges;
  • Your collections calls, wage garnishees and legal actions stop;

It is because of these advantages that more and more people in financial difficulty choose a consumer proposal over a personal bankruptcy with Debt Free.

Do you want to learn more? Please contact us and we will review in more detail the benefits of filing a consumer proposal tailored to suit your personal needs.

3) What happens if my creditors do not accept my consumer proposal?

This can happen, but not too often. If it does, often it is just a matter of offering a little more in the monthly payment for the majority of your creditors to accept the consumer proposal.

If a consumer proposal does not work out but you need to deal with your debts, you then have the last option of declaring a personal bankruptcy. Either way, a consumer proposal or a personal bankruptcy, we can help make the process as stress free as possible for you.