Filing a Consumer Proposal in Canada

What is a Consumer Proposal?

It’s a proposal made by debtors, facilitated by bankruptcy trustees, to modify their payments to creditors. Such a proposal must be completed

within five years.

LCTaylor: 1.800.463.8371 lct@lctaylor.net

Most Frequently Asked Questions About Consumer

Proposals in Canada

LCTaylor: 1.800.463.8371 lct@lctaylor.net

Meeting with a licensed bankruptcy trustee is the first step.

Your trustee will conduct a complete review of your finances to use as the

basis for submitting a proposal to your creditors.

1. What is the first step for filing a consumer proposal?

LCTaylor: 1.800.463.8371 lct@lctaylor.net

In order to file for a consumer proposal you must meet the following criteria:

-Be insolvent-Have total debt less than $250,000 (excluding your home mortgage)-Have a steady source of income

Am I eligible for a consumer proposal?

LCTaylor: 1.800.463.8371 lct@lctaylor.net

Do my creditors have to accept my proposal?

Creditors do not have to accept your proposal but usually will if they stand to

receive more than if you file for bankruptcy.

If a majority of your creditors vote to accept the proposal, all unsecured creditors in the

proposal become bound by it.

If a proposal is rejected, you can meet with your creditors, determine why it was

rejected and resubmit it.

LCTaylor: 1.800.463.8371 lct@lctaylor.net

What are the terms of a consumer proposal?

• The terms of a proposal are based on your personal finances and your ability to pay.

• You will need to make monthly payments as outlined in the proposal.

• Attendance at two financial counselling sessions is required to complete your proposal.

LCTaylor: 1.800.463.8371 lct@lctaylor.net

When will my consumer proposal be complete?

A consumer proposal needs to be completed over a pre-determined

amount of time of no more than five years.

If you meet the criteria as outlined in your proposal terms, you will complete

your agreement.

Note: Section 178 debts will survive a proposal.

LCTaylor: 1.800.463.8371 lct@lctaylor.net

Why should I file a consumer proposal?

• Consumer Proposals provide legal protection from your creditors

• You can retain your assets

• You can pay back a reduced amount of your overall debt

LCTaylor: 1.800.463.8371 lct@lctaylor.net

For more information about filing a consumer proposal in Manitoba or Ontario

visit LCTaylor.com

Trustees are available to answer your questions at ourWinnipeg and Kenora locations.

LCTaylor: 1.800.463.8371 lct@lctaylor.net