Consumer proposal reviews and experiences

Posted on 20 July 2022

Written by Samantha Galea

You have probably already heard about consumer proposals as one of the best formal debt settlement options provided by Licensed Insolvency Trustees if you are looking for consumer proposal reviews. Consumer proposals enable you to reduce your debt by up to 80%, and at Spergel, our acceptance rate for consumer proposals is 99%. If you, or someone you know, is wondering if a consumer proposal is a good idea, then you may be interested in reading real consumer proposal reviews and genuine consumer proposal experiences from actual clients. At Spergel, we have been helping Canadians file consumer proposals for over thirty years, with more than 100,000 clients throughout Canada and thousands of consumer proposal reviews as a result. In this article, we share some of the most helpful consumer proposal reviews and shed light on working with our team at Spergel. We also explain how filing consumer proposals helped our clients to get them out of debt. They may give you an insight into what a consumer proposal can do for you if you too are struggling with debt and financial difficulties.

How do consumer proposals work?

A consumer proposal is a form of debt relief regulated by the Bankruptcy and Insolvency Act. It is a legal form of debt settlement that can reduce your debt by up to 80%. As well as being a popular bankruptcy alternative, filing a consumer proposal offers relief from your debts and also enables you to keep your assets. In Canada, a consumer proposal is filed by a Licensed Insolvency Trustee. The target of putting together a consumer proposal in collaboration with your trustee is to negotiate your total debt, and to repay creditors a percentage of the amount owed. It will clear your remaining debt. At Spergel, unlike other bankruptcy firms, you will be assigned your own Licensed Insolvency Trustee to walk you through each step of filing a consumer proposal. Another great advantage of a consumer proposal is that you can spread your payments out over a maximum of five years. This makes your debt much more manageable and affordable than handling a large amount of debt. The first step of filing a consumer proposal is to book a free consultation with a Licensed Insolvency Trustee. You will then work out a reasonable proposal figure, and a repayment plan that is fair for both you and your creditors.

Below, we have shared the consumer proposal reviews and experiences of just some of our clients. This will help you to understand what a consumer proposal could do for you. We have made each of our consumer proposal reviews anonymous to protect the details of our clients. Check out more of our client reviews.

Consumer proposal reviews

Example 1: Filing a consumer proposal to eliminate debt quickly

Sarah came in to see us about her financial circumstances after emigrating from Jamaica. She had plans to bring over her husband and son, but through this process she ran into some financial difficulty. She ran up almost $100,000 of debt, and creditors were starting to put pressure on her with collection calls and threats. Sarah’s primary concerns were to tackle her debt, but also not to affect her ability to sponsor her family.

When Sarah came to see us, we spoke about her debt relief options. We started first with her non-statutory options, although she had exhausted these before moving onto statutory options. We looked first at bankruptcy, but while she was non-discharged she would not be able to sponsor her family to come to Canada. She instead chose to file a consumer proposal. A consumer proposal allows the debtor to compromise their debt, and it can reduce your debt by up to 80% in affordable monthly repayments. By working with Spergel, Sarah had her consumer proposal accepted and was able to repay $0.20 to the dollar of her debt. This allowed her to sponsor her husband and son to emigrate to Canada in the future.

Example 2: Filing a consumer proposal as an alternative to bankruptcy

A husband and wife came to see us with a substantial amount of debt. Our Licensed Insolvency Trustee, Rob, walked them through all of their available options. We talked about a bankruptcy, a consumer proposal, and any other solution that may be feasible for them, including a debt consolidation loan. At first glance, bankruptcy seemed like an easy solution for them to go ahead with, but they wanted to proceed with a consumer proposal. At Spergel, while we advise, we want to make sure all our clients are comfortable with their debt relief pathways. Rob walked them through the whole journey, informing them of the detail involved in a consumer proposal while supporting them through it. Sadly, five months into the proposal, the husband passed away. A large settlement was passed to the spouse because of his passing.

Thankfully, because they had filed a consumer proposal, all of the terms were set in place. She was able to pay out the consumer proposal and keep a large amount of the settlement, all while mourning her husband. If this was a bankruptcy situation, we would have had to deal with the large settlement and it would have been a difficult financial period for her. At Spergel, one of the most important parts of our job is going through the different debt relief options available. We helped this couple find the best option for them, and she was able to mourn her loss while moving on with her life, free from debt.

Example 3: Filing a consumer proposal to make debt repayments affordable

We recently met a couple who owed around $50,000 in debt. The husband was on an Ontario Disability Support Program (ODSP) and struggling to make ends meet. The wife was a minister and unfortunately had a serious car accident and lost her wages. They were distraught and come to see us as they could not pay their rent or their bills. We sat them down and ran them through their debt relief options, after having looked at their budget.

Together, we decided to negotiate a consumer proposal for $125 a month over 48 months. This helped them manage to get through their month. They were so happy and it changed their lives. They returned to Spergel for a credit counselling session a couple of months ago, and they were so excited to move forward. They could not be happier with our services.

Example 4: Filing a consumer proposal for debt relief while keeping your assets

At Spergel, we know that sometimes in life things happen that we are not prepared for. We recently worked with a debtor who was working two jobs – a happy, hardworking man who was able to sustain his lifestyle. Unfortunately, he got into an accident which left him disabled. He came to speak to a Licensed Insolvency Trustee at Spergel, and because of his disability he had accumulated around $35,000 in debt. He had a house that he lived in, which he did not want to lose. Surviving on a disability income, his options were very limited and he did not have anywhere else he wanted to move to. The equity was substantial, but he also wanted to avoid bankruptcy.

We filed a consumer proposal for him, and just paid out the amount in full. He was able to pay it out over the five year term. His debt was gone and he was able to keep his house. He could get back to his lifestyle without having to worry about debt. He was so happy with the outcome that he still stops by the office to say hello every once in a while. It is great to see him so well.

The most common consumer proposal experiences we see

The consumer proposal reviews above are just a few common case studies or stories from the thousands of clients we meet with each year. You might be able to relate to one of these examples, or in the many other situations we see:

If you are considering filing a consumer proposal to get out of debt or need more information on your debt relief options, book a free consultation with Spergel. Our Licensed Insolvency Trustees have received excellent consumer proposal reviews, and we have a 99% acceptance rate on all consumer proposals we file. We understand the pressures many Canadians experience when struggling with debt, and we are here to help you.


Samantha Galea

Samantha Galea is a Chartered Insolvency and Restructuring Professional and LIT (Licensed Insolvency Trustee) who started working with Spergel as a summer student in 2010. With her socio-political background, Samantha is committed to breaking the stigma associated with bankruptcy so that individuals and families can properly understand all of their options on their path to debt freedom. She is also our resident expert on student debt and collection agencies, as well as the manager of our Brampton office. Outside of work, Samantha is an avid reader of historical non-fiction and world traveler.

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