A Consumer Proposal May Be Your Solution
An alternative to filing bankruptcy, the Consumer Proposal is an interest-free repayment option that protects you against creditors and allows you to keep your assets.
A Consumer Proposal is a debt relief solution that allows you to reduce your debt and repay a portion without interest. It is a formal, legally binding process with an offer to pay back a percentage of what is owed to your creditors, extend the time you have to pay off your debts – or both. It’s a repayment plan where you pay back your creditors, but often at a fraction of what you owe them.
The length and amount of your offer will depend on a combination of affordability and how your offer compares to bankruptcy. A Consumer Proposal is a popular alternative to bankruptcy because it allows you to keep your assets.
Benefits of a Consumer Proposal
- • Allows you to keep your assets
- • Stops collection calls and wage garnishments
- • Freezes interest and penalties on your debts
- • Reduces the amount you pay back on your debts by 70%
Eli’s Path to Debt Freedom
After cashing out an RRSP to pay for his wedding. Eli received an unexpected tax bill. With his other debts he could not afford to pay and eventually the debt grew. CRA decided to initiate a wage garnishment. We helped Eli avoid bankruptcy with a Consumer Proposal. Debt consolidation saved Eli’s pay cheque and his Consumer Proposal taught him to plan for unexpected expenses in the future.
September 25, 2020
I just did counselling with Ma'am Perveen Katila and she is very accomodating, helpful and gives a lot of useful advices on how to properly manage finances. Overall has an...More
September 23, 2020
Dealing with serious financial issues is embarrassing, confusing, stressful, and brings a lot of shame. It did for me anyway. The team at Spergel got me through one of the...More
September 20, 2020
My counselor was very friendly every time. They were able to help me with any questions I had and am glad to be almost payed off for my proposalMore
September 18, 2020
Perveen is fantastic! She has a lot of great information and resources to share, which helped keep me on track even through COVID 19. Thank you Perveen for all your help and...More
September 17, 2020
Perveen was a great help. She was understanding and always had a positive mindset on the plans moving forward. Never once made me feel any shame of the financial position I was...More
September 17, 2020
What an amazing experience being able to have a heavy load taken off my shoulders.Everyone was respectful and understanding and explained step by step.. I am on my way to being...More
September 16, 2020
Very kind people, very helpful and informative.More
September 16, 2020
we are very happy with your service. I will be very happy to refer you to friends with debt problems.More
Frequently Asked Questions
Consumer Proposal vs. Bankruptcy
A consumer proposal gives you the flexibility to ensure your monthly payments fit into your budget. Unlike in a bankruptcy where payments are determined solely based on income, a proposal fixes your monthly payment. You decide what you can afford that offers a fair return to your creditors – based on your current earnings, not your future ones.
Who Qualifies For Consumer Proposals
Anyone with enough debt to file bankruptcy may also consider a consumer proposal. The proposal offer must be better than what creditors would get if you were to file a bankruptcy. WE will help you calculate this amount and use our experience provide advice on what an offer your creditors would likely accept.
Debt Help Learning Centre
If you’re just starting to explore your options, visit our learning centre to learn from our articles and resources to start on your path to debt freedom, and when you’re ready, our trustees are always available to listen.