If you have creditors calling you, a consumer proposal is a less stressful way to pay down your personal debt. You’ll gain immediate protection from creditor proceedings while we help you create a sound consumer debt proposal that resolves your debt and saves you money.
With our experienced Licensed Insolvency Trustees guiding the process, you’ll not only save money but also gain the peace of mind that comes from knowing your financial future is in the best hands, with powerful, forward thinking debt solutions that work.
Many people considering a consumer proposal feel uncertain at first, but our Licensed Insolvency Trustees provide understanding, clear guidance, and support at every stage.
If so, a Consumer Proposal may be the right solution to help you regain control of your finances. A Consumer Proposal allows you to reduce your total debt, stop interest, and consolidate payments into one affordable monthly amount.
You can file a consumer proposal if you owe between $1,000 and $250,000 (not including secured debts like a principal residence mortgage).
Consumer proposals end any telephone calls, collection or legal action, wage garnishments, bank account seizures, and unencumbered asset seizures.
A consumer proposal is likely to be accepted by your unsecured creditors because it provides a greater financial recovery than non-payment or bankruptcy.
If you owe more than $250,000, you’re not eligible to file a consumer proposal. You may want to consider a Division 1 Proposal or filing for personal bankruptcy instead.
A consumer proposal must be submitted through a federally regulated Licensed Insolvency Trustee (LIT) like the ones who work at Faber.
Unsecured creditors vote to accept your consumer proposal by a simple majority (50% or more). If your proposal is rejected, you will need to explore other options.
If your consumer proposal is accepted, you will need to fulfill your obligations, which may include:
Consider an individual who had $40,000 of unsecured debt that was a mix of credit cards and loans. They were keeping up with minimum payments of between $700 to $1,200 per month but were constantly feeling behind because the principal on the debt was hardly being reduced. Having high balances and growing interest made everyday expenses stressful, even without missing any payments. The individual worried about asking for help, protecting their assets, and figuring out how long it would take to regain stability.
After speaking with a Licensed Insolvency Trustee, they learned that a Consumer Proposal could reduce debt without filing bankruptcy. Their unsecured debt was consolidated into one affordable monthly payment, and interest stopped.
In this case $40,000 in unsecured debt was able to be reduced by nearly 45%, creating a clear, predictable path forward. With the Consumer Proposal their total debt was reduced to $22,000 total, with no interest applied. Their monthly payments were reduced to around $367 per month and they were able to be debt free after 5 years.
Now the individual knows when their debt will be resolved, and financial decisions feel manageable again.
If this scenario sounds familiar, you are not alone. A confidential conversation with a Licensed Insolvency Trustee can help you understand your options.
One of the most common concerns when exploring debt solutions is whether you’ll lose the things you’ve worked hard for. With a Consumer Proposal, the answer is clear: you keep your assets.
A Consumer Proposal is designed to help you repay a portion of your debt in a structured, affordable way while maintaining ownership of your property. It offers relief from debt pressure without requiring you to give up your home, vehicle, or personal belongings.
Here’s what this typically means for you:
Your personal items, including clothing, household furniture, and basic appliances, remain yours. Consumer Proposals do not involve asset seizure.
You keep your vehicle(s), regardless of value, as long as you continue making any required secured payments, such as auto loans.
Your home is protected in a Consumer Proposal. There is no requirement to surrender home equity, making this option especially appealing for homeowners.
Your pensions, RRSPs, RESPs, RIFs and LIRAs remain fully protected.
Government assistance payments such as GST credits, Canada Child Benefit (CCB), and CPP are fully protected and continue uninterrupted.
As long as beneficiaries are within the preferred class of parent, spouse and child.
Once your Consumer Proposal is filed, you’ll experience immediate relief and structure:
Each step is designed to provide stability, clarity, and forward momentum, without the disruption of losing assets. Consumer Proposals typically last up to five years, but many people choose to pay them off early.
A Consumer Proposal isn’t about starting over from zero. It’s about moving forward with what you already have, on terms you can manage.
Every month, our own Dan McDicken talks with CTV Your Morning, sharing practical insights on debt solutions to help Canadians navigate financial challenges with confidence.
We can help you weigh your debt-relief options so that you can make a confident and well-informed decision.
Learn more about consumer proposals and how one can help you take control of your finances:
While it’s legally possible, filing without a Licensed Insolvency Trustee is risky. LITs ensure the process is properly managed, legally binding, and tailored to your situation. Their guidance helps protect you and your assets.
A Consumer Proposal is a confidential legal process. Your employer is not notified unless they are also a creditor. In most cases, your day-to-day banking continues as usual, and you can work with your Licensed Insolvency Trustee to make any necessary adjustments to ensure payments are managed smoothly.
Yes. A Consumer Proposal is flexible and allows you to make extra payments or pay it off early without penalties. Many people choose to do this once their financial situation improves, allowing them to complete the process sooner and move forward with rebuilding their credit.
