Many people assume avoiding formal debt solutions protects their credit. In reality, unresolved debt often causes longer lasting credit damage.
Missed payments, collection accounts, and high balances can remain on a credit report for years without a clear path to resolution.
A consumer proposal replaces uncertainty with structure.
Instead of multiple debts and growing balances, payments are consolidated into one predictable monthly amount with a defined end date.
Our Debt Repayment Calculator can help you understand what manageable payments may look like before exploring formal debt solutions.
Learn more about bankruptcy and other debt solutions.
For many Albertans, this structured approach creates a clearer path toward financial recovery.
A Faber Licensed Insolvency Trustee helps you understand how a consumer proposal will affect your financial future before you make any decisions.
They will:
Their role is not to pressure you into a decision, but to guide you through a regulated process with clarity and fairness
A consumer proposal does affect your credit, but it can also remove the financial pressures that prevent meaningful recovery.
When debt becomes unmanageable, a consumer proposal can provide a structured path forward rather than ongoing uncertainty.
With the right guidance and a clear rebuilding plan, many Albertans go on to restore their credit and regain financial stability.
Book a consultation either in-person or virtually with one of our Licensed Insolvency Trustees, anywhere in Alberta today.
Learn even more through our FAQ page.
A consumer proposal typically results in a drop in your credit score, but it does not automatically place you at the lowest possible score. Credit scores are calculated using multiple factors, including payment history and credit utilization.
Yes. As long as you are making consistent payments towards your mortgage, secured debt, HELOC and vehicle loans. You do not need to wait until the proposal is completed to begin rebuilding. In fact, most credit recovery begins while the proposal is still active.
Your consumer proposal does not affect your spouse’s or partner’s credit report unless they are a co-signer or joint account holder on a specific debt.
A consumer proposal appears on your credit report. Landlords or utility providers may request a credit check, but employers generally do not access credit reports unless the role involves financial responsibility and you have provided consent.
Not always. Prolonged missed payments, collections, and unresolved debt can damage credit for longer and with less certainty around recovery.
You can typically qualify for a mortgage two years after completing your consumer proposal and rebuilding your credit. The mortgage approval depends on income, down payment, and credit rebuilding.
Many individuals qualify for vehicle financing almost immediately after completing their consumer proposal.
Yes it can. Considered as unsecured debt, it can be consolidated with any credit cards and loans. Interest is stopped, allowing you to pay back a portion of the total debt at a significant reduction.
