Consumer Proposals in Canada: The Process & Responsibilities
Understand the formal offer, the role of a Licensed Insolvency Trustee and the obligations involved before deciding whether to explore a consumer proposal.
A consumer proposal is a formal insolvency process administered by a Licensed Insolvency Trustee. It involves an offer to creditors to repay some or all of the debt on proposed terms. Eligibility and suitability depend on your circumstances and the applicable legal requirements.
Begin with an assessment
A trustee explains insolvency and non-insolvency options, examines the financial picture and helps you understand the consequences. A website calculator or an advertised saving cannot determine what a proposal would cost you or whether creditors would accept it.
Understand what is included
Bring all debts, income, assets and agreements to the assessment. Secured debts, co-signers and certain obligations need particular attention. A proposal does not automatically resolve every debt or change another person’s liability.
Read the commitment
Ask about the payment amount and schedule, costs, counselling duties, credit reporting and what happens if income changes or payments are missed. Keep the written terms and confirm whom to contact if difficulties arise.
The step-by-step process guide explains the stages from assessment to completion. The proposal and bankruptcy comparison helps organize questions about the differences.
Contact a trustee directly
You do not need to pay an intermediary to get access to a Licensed Insolvency Trustee. Check the official directory and confirm the provider’s consultation terms before meeting. DebtHelp does not administer proposals or assess eligibility.
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