Keys to a Successful Consumer Proposal 

Keys to a Successful Consumer Proposal 

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By Bromwich+Smith Staff | 523 words | Reading Time: 2 minutes, 36 Seconds | Date: 2024/01/25

You’ve taken that important step, reached out for help to deal with overwhelming debt, and signed into a Consumer Proposal. Congratulations! Now, how do we make sure that your Consumer Proposal is successful?  

What is success? 

A Consumer Proposal is a negotiated settlement of debts. Generally, a Licensed Insolvency Trustee like Bromwich+Smith works with you and your creditors to create a program that works for both of you. The program includes a regular payment (usually monthly) at a fixed amount for a set period of time (up to 5 years). When you have completed your responsibilities, including making all your payments within the defined time and attending two financial counselling sessions, your proposal is complete. When this happens you=will receive a notice of discharge, which signifies the completion of the process. 

What if I miss some payments? 

Life happens, and we understand that sometimes our financial situation changes. A Consumer Proposal is legally binding so if there is any risk of a payment being delayed, the best approach is to contact your Licensed Insolvency Trustee as quickly as possible. At Bromwich+Smith, we have Financial Wellness Partners who are fully aware of the legal requirements and work with our clients to make sure they are successful.  

What is Annulment? 

An annulment, in the scope of consumer proposals, refers to the legal process of declaring a proposal null and void. Annulment effectively ends the entire proceeding, as if it never occurred. Any creditor actions that had been halted due to the debt relief program can start again and the individual will be responsible for paying off their debt in full. In addition, creditors are free to charge interest and penalties which will be backdated to the day before the consumer proposal was filed.  

What Causes Annulment? 

Several circumstances may lead to the annulment of a consumer proposal, which typically takes place when part of the agreement is at risk. The most common cause is defaulting on payments. If the individual misses three payments, the Licensed Insolvency Trustee is required by law to initiate the annulment process.  

What if my Consumer Proposal has been Annulled? 

If a Consumer Proposal has been annulled, you will not be able to file another Consumer Proposal on the same debts.  The options from here would be to file a voluntary Assignment in Bankruptcy, then you could file a Division I proposal. This is typically not recommended as the rules here are much stricter and chances are you would be unable to maintain another proposal payment. Alternatively you could pay the debts themselves in full as if the proposal never occurred. 


Ultimately, during a Consumer Proposal the goal is to complete the program, and be discharged from all debts. In order to obtain a discharge, all payments must be made and all duties must be completed on time based on the agreement filed.   

Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at  1-855-884-9243, Live Chat  or you can request a call back at contact us page. We want to see you flourish!     

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