What Is a Consumer Proposal?
A consumer proposal is a debt solution that allows you to reach an agreement with your creditors to repay only a small portion of your debts, based on your ability to pay.
If you are heavily in debt and having difficulty making your monthly payments, and you are looking to avoid bankruptcy, this solution is for you!
Definition and Functioning
A consumer proposal is an alternative to bankruptcy intended for those who have a stable income and owe a maximum of $250,000 in personal debt (excluding the mortgage on their primary residence).
With this agreement, you make a single monthly payment, interest-free, for a maximum period of 5 years. Your debts are consolidated, and the total amount is reduced.
When to Consider This Solution?
You should consider a consumer proposal if:
Your debt amount is between $6,000 and $250,000 (excluding mortgage);
Your income allows you to repay part of these debts through a reduced, interest-free monthly payment;
You cannot pay the minimum amounts required by your creditors (credit cards, Hydro account, car loan, etc.);
Your debt amount exceeds the value of your assets (property, land, investments, etc.);
You want to avoid bankruptcy;
You want to keep your assets.
Process Overview
Initial Interview: You discuss your situation (debts, income, and assets) with an advisor.
Preparation of the Payment Plan: Our Licensed Insolvency Trustee develops a realistic payment plan tailored to your budget.
Filing the Proposal: Our trustee sends the documents to the Office of the Superintendent of Bankruptcy and to your creditors. This puts an end to unwanted calls, emails, and letters from your creditors.
Analysis by Creditors: They have 45 days to accept or request a meeting to renegotiate the monthly amount and/or the total amount to be repaid.
Mandatory Meetings: Two free sessions are provided to help you better manage your budget and avoid over-indebtedness.
Final Discharge: Once all monthly payments are made, your debts are cleared, and you can begin rebuilding your credit.
Role of the Licensed Insolvency Trustee
According to the Bankruptcy and Insolvency Act, only a Licensed Insolvency Trustee can file a consumer proposal on your behalf.
GOBEIL GROUPE CONSEIL is a member of the Conseil des Syndics autorisés en insolvabilité. Our trustee manages the entire process (preparation, negotiation, filing, and follow-up) to obtain the best possible repayment agreement for you.
Advantages of the Consumer Proposal
You don’t have to repay everything What is often surprising is that with a consumer proposal, you only pay a portion of your debts. Our trustee negotiates a realistic amount with your creditors based on what you can truly afford. Once this amount is repaid, the rest of the debt is erased.
A single monthly payment, interest-free No need to juggle multiple payments or stress over rising interest rates. You make one monthly payment, always the same amount, with no fees or surprises. It is much simpler to manage daily.
Calls and threats stop As soon as the proposal is filed, collection calls, threat letters, and the accompanying stress stop. You are protected by law, which finally allows you to breathe.
You do not lose your assets Unlike bankruptcy, a consumer proposal allows you to keep what belongs to you: house, car, furniture, investments, etc. You don’t have to lose everything to settle your debts.
Less damaging to your credit report Yes, your credit will be affected, but for a shorter time than with bankruptcy. Most importantly, you will have the chance to start fresh and rebuild your credit file more stably and quickly.
Costs and Duration
The monthly amount to be paid depends on your debt level and your ability to pay. This amount is reduced through negotiations with creditors. The duration generally goes up to 5 years (60 months).
Eligibility
You can submit a proposal if:
You are insolvent (you can no longer pay on time);
The value of your assets is less than the total amount of your debts;
You live in Canada or own property in Canada.
FAQ
Will a consumer proposal affect my credit score? Your credit score will indeed be affected, but the impact will depend on your diligence in making your monthly payments. The fact that you used a Consumer Proposal will remain on your record for 1 to 3 years after its full completion.
Can I keep my car and my house? Yes, you can keep all your assets if you make a consumer proposal. However, your assets (house, land, equipment, investments, shares, etc.) must not exceed the total amount of your debts.
What happens if I miss my payments? After three missed monthly payments, the consumer proposal can be annulled by your creditors. They can then resume collecting your original debts, including the interest that should have been paid.
Are tax debts and student loans included? Yes, tax debts are included in the proposal, as well as student loans (if the last year of study was completed more than 7 years ago). Otherwise, a portion of the loan will have to be paid.
How much do the trustee’s services cost? The cost of the trustee’s services is included in the monthly amount to be paid. Therefore, you have nothing to pay during the first meeting or subsequent meetings. Trustee fees and disbursements are regulated and are the same for all trustees.
Peace of Mind Restored Through Consumer Proposals
“I was completely overwhelmed by my debts, and I didn’t even know the Consumer Proposal existed. When I learned it was an option, I had a hard time believing it. The advisor at Gobeil Groupe Conseil put me at ease and listened without judgment. She helped me better understand my situation and get out of it.” — M.P., August 2022
“What I liked immediately about this trustee was their human approach. They took the time to listen to me without ever making me feel bad. At every step, they were available, professional, and respectful. I felt I was in good hands.” — D.S., March 2023
“I had major financial problems and didn’t know what to do anymore. The advisor at Gobeil Syndic helped me with the consumer proposal. I felt supported and understood. Now, my debts are settled, and above all, I am relieved. This process allowed me to regain my confidence, and I now have a real chance to start fresh.” — P.B., February 2023
“If you feel like you’re in a dead end, I’m telling you: ask for help. There are solutions to get out of over-indebtedness. It really gave me hope again.” — K.V., February 2025
Make an Appointment
Want to know if a consumer proposal applies to you? Get a free and confidential evaluation with our trustee.
Book your appointment for a free consultation now! Our advisors serve the entire province.
Gobeil Groupe Conseil, Licensed Insolvency Trustee, is proud to help hundreds of people every year regain their peace of mind.
