Consumer Proposals in Canada
If you can’t afford your debt repayments, a consumer proposal could be the lifeline you’re looking for. Call our team to take back control today.
Safe, secure & confidential
Consumer proposals - your path to a debt free future
Finding your way through financial uncertainty is never easy. If you’re considering filing for a consumer proposal, it’s normal to feel overwhelmed and doubt whether you’re making the right decision. Our specialists understand the real weight of this struggle and the want for a fresh financial start.
Our dedicated team is here to provide clarity on consumer proposals, and help you find debt solutions that work for your specific needs. With us by your side, you’ll have the confidence to take back financial control, making informed decisions that lead to lasting financial well-being.
What is a consumer proposal?
In a consumer proposal, you make an agreement with the people you owe to pay back a lower percentage of your debt, over a longer period of time, with no interest or hidden fees. This flexibility can make your monthly repayments far more manageable, and the repayments are calculated based on what you can afford, your assets, income and debt load.
You will send your repayments to a Licensed Insolvency Trustee, who will send the money to your creditors on your behalf. It is the safest and most efficient way to consolidate your debt, and a great alternative to bankruptcy.
It’s normal to have doubts though, and we’re here so you don’t have to face your worries alone. Give our friendly team a call today for a safe, judgment-free space to talk about your financial situation.
Together we can get you on your way to financial freedom.
What happens when I file a consumer proposal?
Filing a consumer proposal is a big step towards managing your debt and taking back financial control. We’ll be with you throughout the entire process, from your initial consultation to working out a repayment plan with your creditors.
Take a look at our quick video below for a rundown of exactly what to expect, and remember, if you have any questions, we’re just a phone call away.
Is a consumer proposal right for me?
The right solution for your debt will be as unique as your financial situation itself. Not sure if a consumer proposal is what you need? Here are some of the benefits:
- Avoids bankruptcy – Consumer proposals offer a safe way to avoid bankruptcy and, in most cases, creditors will accept your proposal if they are paid back more than they’d expect to get through bankruptcy.
- Manageable payments and reduced debt – You will agree to a manageable payment package that could reduce the amount you owe by up to 70%.
- Fixed payments – You pay back the same amount every month, regardless of whether your earning potential increases.
- Keep your assets – Your belongings, such as property and investments, will be protected.
- No interest or hidden fees
When you’re looking for a good debt solution, there’s always a lot of information to digest. So, if you’ve got questions, feel free to reach out to our team of professionals today – we are always on hand to help.
What debts are included in a Consumer Proposal?
Consumer proposals can help you with a large number of unsecured debts. This could include:
Can’t see your debt type in the list above? Don’t worry – we can still help. Consumer proposals only deal with unsecured creditors, meaning all secured loans like your mortgage or car loan must be handled separately.
If you’re not sure which type of debt you have, get in touch today and we can help you figure it out.
Can I file for a consumer proposal?
In Canada, consumer proposals are federally regulated. This just means there’s a few criteria you have to meet to qualify for consumer proposals, such as:
- You are able to pay a percentage of your debt.
- You’re a consumer with less than $250,000 of unsecured debt.
- You are a Canadian citizen or own property in Canada.
- Your debts are greater than any asset that you own.
We know how daunting this decision can be, but there’s no reason to lose your house or car if this solution works for you. Protect yourself and your property with a consumer proposal today – we will be here to help every step of the way.
Our Licensed Insolvency Trustees - here to help with consumer proposals
With our Licensed Insolvency Trustees, you will never have to face the stress of debt alone again. We are backed by years of experience and are ready to help you find a way to financial security.
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Jay T. HarrisFCPA, CIRP, LITLicensed Insolvency Trustee -
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Kyle HarrisLL.B., CIRP, LITLicensed Insolvency Trustee -
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Adam FisherCPA, CIRP, LITLicensed Insolvency Trustee -
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Joshua HarrisBCOMM., MIB, CIRP, LITLicensed Insolvency Trustee -
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David AdamsLicensed Insolvency Trustee -
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Doug LoiselleLicensed Insolvency Trustee -
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Robert McLernonBComm, CIRP, LITLicensed Insolvency Trustee -
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Shelley KoehliLicensed Insolvency Trustee -
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Jill StruebyLicensed Insolvency Trustee
Why Harris & Partners
Our Licensed Insolvency Trustees provide a customized service that could remove up to 80% of your debt and stress, so you can breathe easier.
Our multilingual team provides support in many languages, from Farsi and Portuguese to Italian and Tamil, leaving out complicated jargon, so you understand everything, every step of the way.
Want to speak to someone in person? Our team is on hand to help at a Harris & Partners office near you.
Filing a consumer proposal - it's a simple process
We’ll take the time to understand your unique situation, without judgment. We need the full picture to help you find the best solution, including your income, debt, and who you owe money to. All consultations are free and confidential.
Once we understand your situation, we’ll start making a plan. We’ll explore all debt solutions and only recommend what’s right for you. We’ll never pressure you into any decisions and tailor our services to your needs.
Once you’re happy with the plan, we’ll help you put it into action. We’ll always prioritize your financial well-being and provide unwavering support and trustworthy guidance from start to finish.
Example Savings With Harris & Partners Debt Relief
Your Potential Debts:
Your monthly repayments over a 60-month period would be
Before Consumer Proposal
$1409
After Consumer Proposal
$210
Monthly payments are determined based on individual financial factors
How Much Could I Save?Consumer Proposal FAQs
What’s the process for filing a consumer proposal?
The process for filing a consumer proposal is fairly straightforward; here’s how it works at Harris & Partners:
- Have your consultation with one of our Licenced Insolvency Trustees to help us better understand your financial situation.
- We’ll work together to create a consumer proposal plan that helps you pay back your debts in a manageable way.
- Your consumer proposal will be submitted to your creditors, who will then review it and decide whether to accept it or not.
- If it’s accepted, you just have to attend your counselling session and make your monthly payments. If it’s denied, we can work with your creditors to negotiate different terms or help you find a different debt solution.
- Once the terms of your proposal are met and all payments are made, any remaining debt you have will be written off.
Ready to get started or have questions? Give us a call today, and we’ll be happy to help.
Will a consumer proposal affect my credit rating?
Yes, a consumer proposal will affect your credit rating. However, the impact will not be as severe as bankruptcy. A consumer proposal will remain on your credit report until the sooner of three years after you complete your payments, or six years after you file.
How long does a consumer proposal last for?
If you’re wondering how long your consumer proposal will last, it typically cannot last for longer than five years. Yet, it’s important to keep in mind that the exact length depends on the type of proposal that you submit.
If you choose to, you are able to pay off your consumer proposal early. It will also be a relief to learn that you can pay it off early without the risk of penalties.
A consumer proposal will affect your credit rating in the short-term but in the long-term (after completing the consumer proposal from start to finish) you may see an improved credit score rating. If you are approved for a consumer proposal, it will stay on your credit report 3 years after you’ve paid off your debts or 6 years from the day the consumer proposal was filed (whichever comes first).
Getting out of debt will make you feel free and will help you start your journey of having a better credit rating overall.
What will I lose and / or keep after a consumer proposal?
Consumer proposals are not like bankruptcies. Instead, your assets and belongings are protected, so you will be able to keep them all.
Can you keep a credit card with a consumer proposal?
In the vast majority of cases, you can’t keep a credit card when you file a consumer proposal. It is possible to apply for a new credit card during your consumer proposal, but it’s advised you do so with caution and maintain healthy credit card habits, such as paying bills on time and making regular payments to rebuild your credit.
This can vary according to your own individual circumstances, the state of your credit and the lender you use.
Often a lender won’t consider a new mortgage until your credit score falls within a healthy range. There are alternative lenders who will be more willing to consider a new mortgage and there is nothing to stop you from applying for one.
Can a consumer proposal be rejected?
A consumer proposal can be rejected by a creditor, but that doesn’t mean you are out of options or alternatives.
After you file a consumer proposal, creditors have 45 days to vet and vote on your proposal. In that time, they can: reject the proposal, reject the terms of the proposal and ask for a creditors meeting, accept the proposal or do nothing.
Votes are counted only if a creditors meeting is requested. If creditors then vote to reject your proposal by a majority, you have the following options:
- Renegotiate the terms of your proposal
- Withdraw your proposal and file for bankruptcy
- Pursue a different type of debt relief solution
- File for a new proposal at a future date
Where are you based?
Harris and Partners have offices across Ontario and Alberta, including: Markham, Barrie, Brampton Brantford, Calgary, Hamilton, Kitchener, North York, Oshawa, Pickering,St. Catharines and Toronto.
We also operate in the following areas and surrounding areas: Waterloo, Lethridge, London, Windsor, Guelph, Kingston, Kanata, Milton, Greater Sudbury, Red Deer, Edmonton, Fort Mcmurray.
How much does a consumer proposal cost?
The cost of a consumer proposal is different for everyone as everybody’s financial situation is unique to them. However, there are some general ‘rules of thumb’ that apply to most cases:
- A proposal is an offer to your creditors. A panel will vote on whether to accept your proposal and 51% of the votes cast have to be in favour of it in order for it to pass, otherwise, we have to negotiate.
- A consumer proposal is usually only accepted by major banks with a 30% (or 30 cents on the dollar) payback offer.
- Payments are made by you for up to 60 months.
- Most banks won’t entertain a proposal that offers them less than $115 per month for 60 months.
Do I have to pay the Trustee as well as the consumer proposal costs?
What are the cost advantages of taking out a consumer proposal over bankruptcy?
The cost of a consumer proposal costs much less at around $1,500, including no upfront fees.
With a consumer proposal, you’ll just pay one monthly fee to your Trustee, which is usually much less than the separate payments you’d make to your various creditors. This gives you more disposable income each month without doing the damage to your credit score that bankruptcy would do.
If you file for bankruptcy then it will stay on your credit file for 6 years, effectively affecting your ability to apply for credit for that length of time. With a consumer proposal, it will be removed 3 years after you’ve paid off your outstanding debts and your credit score should increase, too.
Is bankruptcy or a consumer proposal the right option for me?
Bankruptcy and consumer proposals are both debt relief options, but they have different advantages and disadvantages. Bankruptcy is a more drastic option, but it can wipe out all of your eligible debts. A consumer proposal is a less drastic option, but you will still have to repay a portion of your debt.
The best way to decide which option is right for you is to speak with one of our Licensed Insolvency Trustees. They will take the time to understand your unique situation and help you find the best solution for you. And the best bit – our consultations are completely free.
File a debt consumer proposal with Harris & Partners
Don’t wait for your debts, penalties and interest charges to increase. For most, the first step onto the path toward a debt-free life involves filing a consumer proposal. With fewer, less expensive payments, consumer proposals are a less stressful way to face your debts head-on.
Harris & Partners Inc. is a licensed trustee insolvency (LIT) providing specialist debt relief options to help you manage your financial troubles. We offer a number of debt relief services including debt consolidation and debt settlement.
Harris & Partners is your go-to source for debt help in Canada. We have conveniently accessible locations throughout the country. We are determined to use our expertise to help you live debt-free. Get in touch with a member of our team today!
It's never too late to obtain debt help. Book your free consultation today
- Phone number
- 800-268-8093
- hello@harrispartners.ca
Contact form
Where you can find our consumer proposal services in Canada
We operate across all provinces in Canada except Quebec, so help is always available at a Harris & Partners office near you.
