1. Find out about consumer proposals

In your , you suggest how much you can pay back to your creditors and what your monthly payments will be. You must repay your in 5 years or less. A consumer proposal will stay on your for 3 years after you have paid off the debt.

The creditors that you owe more than half of your debts to must agree to the consumer proposal.

For example, if you owe:

Creditor 1


Creditor 2


Creditor 3


Creditor 4


Total Debt


This means that the creditors who agree to the consumer proposal must have at least $26,001 of the debt.

If creditors 1 and 3 agree, creditors 2 and 4 have to accept the consumer proposal ($5,000+$25,000 = $30,000)

If only creditors 1 and 4 agree, the consumer proposal will not be accepted ($5,000+$12,000 = $17,000), and you will have to look at other options.

Missing payments

Once you have filed a consumer proposal, creditors can no longer call you to demand money. But you must make your payments on time.

You are allowed to miss only 2 payments during the term of your consumer proposal. If you miss more than 2 payments, your consumer proposal will be cancelled. If your consumer proposal is cancelled, you cannot make another consumer proposal to the same creditors.

When your consumer proposal is cancelled, creditors can start trying to collect their money from you again. One way they can try to collect is by suing you in court. If you think you will have a problem making a payment, it is best to talk to your right away.

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