What is a consumer proposal?
A consumer proposal is a debt relief solution that allows you to reach an agreement with your creditors to repay only a portion of your debts, based on your ability to pay.
If you’re heavily in debt, struggling to make your monthly payments, and want to avoid bankruptcy, this solution is for you!
Definition and How It Works
A consumer proposal is an alternative to bankruptcy designed for individuals with a stable income and up to $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 Should You Consider This Option?
- Your total debt ranges between $6,000 and $250,000 (excluding mortgage);
- Your income allows you to repay a portion of this debt through a reduced, interest-free monthly payment;
- You’re unable to make the minimum payments required by your creditors (credit cards, utility bills, car loan, etc.);
- Your total debt exceeds the value of your assets (property, land, investments, etc.);
- You want to avoid bankruptcy;
- You want to keep your belongings.
Process Overview
Initial consultation: You’ll discuss your situation with an advisor (debts, income, assets).
Payment plan preparation: Our licensed insolvency trustee will create a realistic plan that fits your budget.
Filing the proposal: Our trustee will submit the documents to the Office of the Superintendent and your creditors. This puts an end to collection calls, emails, and threatening letters.
Creditors’ review: Creditors have 45 days to accept or request a meeting to renegotiate the monthly payment and/or total amount.
Mandatory sessions: Two free sessions will help you manage your budget and avoid future debt.
Final discharge: Once all 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 (LIT) can file a consumer proposal on your behalf.
GOBEIL GROUPE CONSEIL is a member of the Council of Licensed Insolvency Trustees. Our trustee handles the entire process (preparation, negotiation, filing, and follow-up) to help you get the best repayment terms possible.
You Don’t Have to Repay Everything
Many people are surprised to learn that with a consumer proposal, you only repay part of your debts.
Our trustee negotiates a reasonable amount with your creditors based on what you can truly afford. Once that amount is repaid, the remaining debt is erased.
One Monthly Payment, No Interest
No need to juggle multiple bills or stress over growing interest. You make a single monthly payment—always the same amount—without fees or surprises.
No More Calls or Threats
As soon as the proposal is filed, collection calls, threat letters, and the stress that comes with them… all stop. You’re legally protected.
You Keep Your Assets
Unlike bankruptcy, a consumer proposal lets you keep your property—home, car, furniture, investments, etc.
Less Impact on Your Credit Score
Yes, your credit will be affected—but for a shorter time than with bankruptcy. Most importantly, you’ll have a chance to rebuild more quickly.
Costs and Duration
Your monthly payment depends on the amount of your debt and your ability to pay. The amount is reduced through negotiations with your creditors.
The repayment period typically lasts up to 5 years (60 months).
Eligibility
- You are insolvent (you can no longer pay your debts on time);
- The value of your assets is less than the total amount of your debts;
- You live in Canada or own assets in Canada.
Frequently Asked Questions
Will a consumer proposal affect my credit score?
Your credit score will be affected, but the impact depends on your consistency with monthly payments. It will remain on your record for 1 to 3 years after completion.
Can I keep my car and home?
Yes, you can keep all your assets. However, their value must not exceed your total debts.
What happens if I miss payments?
After three missed payments, your proposal can be canceled. Creditors may resume collecting the original debts, including interest.
Are tax debts and student loans included?
Yes, tax debts and student loans are included (if your last study year ended more than 7 years ago). Otherwise, part of the loan remains payable.
How much do trustee services cost?
The trustee’s fees are included in the monthly payment. There are no additional fees during meetings. Fees are regulated and the same across all trustees.
They Found Peace of Mind Thanks to the Consumer Proposal
“I was completely overwhelmed by debt and didn’t even know the consumer proposal existed. When I learned it was an option, I could hardly believe it.
The advisor at Gobeil Groupe Conseil made me feel confident and listened to me without judgment. She helped me understand my situation and find a way out.”
M.P. August 2022
“What I appreciated right away with this trustee was their human approach. They took the time to listen without ever making me feel bad. At every step, they were available, professional, and respectful. I felt like I was in good hands.”
D.S. March 2023
“I had serious financial problems and didn’t know what to do. The advisor at Gobeil Syndic helped me with the consumer proposal. I felt supported and understood. Now my debts are settled, and most importantly, I feel relieved. This process helped me regain my confidence and start fresh.”
P.B. February 2023
“If you feel like there’s no way out, I’m telling you: ask for help. There are real solutions to escape overwhelming debt. It gave me hope again.”
K.V. February 2025
Book a Consultation
Wondering if a consumer proposal is right for you? Get a free, confidential evaluation with our trustee.
Book your appointment now! Our advisors serve the entire province.
Gobeil Groupe Conseil, Licensed Insolvency Trustee, is proud to help hundreds of people each year regain their peace of mind.
