Consumer proposal

Reduce your debt by up to 80%.

Keep your assets
Your overall debt amount is negotiated down
A fixed monthly payment based on what you can afford
All interest & penalty charges, collection efforts and wage garnishments STOP

What is a consumer proposal?

A consumer proposal can be a good alternative to personal bankruptcy as it allows you to reduce your debt while avoiding the negative consequences associated with a bankruptcy.

Our Licensed Insolvency Trustees negotiate with your creditors on your behalf to reduce your overall debt and provide you with a fixed monthly payment for the term of your proposal (usually 60 months).

This process can result in your debt being reduced to a fraction of what you owe with the balance being forgiven by your creditors.

See if you qualify In depth blog

Filing a consumer proposal

A step-by-step guide

Only Licensed Insolvency Trustees can administer a consumer proposal on your behalf, which is regulated by the Bankruptcy and Insolvency Act. We’ll help you determine if a consumer proposal is the right solution for you and work together on the steps to file your application.

Here are the steps involved in filing a consumer proposal:

Step 1

Book a free consultation

Take the first step and speak to one of our experts. It’s always free, confidential and without judgment. We’ll review your personal and financial situation by asking questions about your debts, income and assets. We’ll help you choose the best debt relief solution based on your personal situation.

Step 2

We prepare your documents

If a consumer proposal is determined to be the right solution for you, we’ll prepare all documents for you to sign including a formal offer to settle your debts with your unsecured creditors. We will also file your documents with the Office of the Superintendent of Bankruptcy.

Step 3

Review & sign your proposal

Once your consumer proposal is filed, we will notify your creditors and provide details of your settlement offer, which they have 45 days to review. If the majority of your creditors vote in favour of the offer, your proposal is considered approved and legally binding, even on creditors who did not vote in favour. All interest accumulation, collection calls, legal actions and wage garnishments stop.

Step 4

Complete your repayments

Once your consumer proposal is approved, all interest accumulation, collection calls, legal actions and wage garnishments stop. You then start fulfilling the terms of your proposal by making your monthly payments and attending two mandatory financial counselling sessions to help you stay debt-free. Once your payments are complete and you have completed your counselling sessions, you will receive a Certificate of Full Performance. You can now start restoring your credit and living debt free.

How to qualify for a consumer proposal

Your debt has become unmanageable
You are unable to make regular minimum payments
You owe over $1,000 but less than $250,0000 in unsecured debt (credit cards, tax debt, student loans, payday loans, etc.)
You are a Canadian resident, own property in Canada or do business in Canada
You have a reliable source of income to support the monthly payment

To be eligible for a consumer proposal, you will need to work with a Licensed Insolvency Trustee, the only professionals who are licensed in Canada to file your consumer proposal.

See if you qualify Call: 1-855-884-9243

Key benefits of a consumer proposal

You keep the value of your assets, including your car, home, investments, tax refunds and tax credits

You get creditor protection that stops collection calls and wage garnishments

You make a fixed low monthly payment based on what you can afford ,and you get up to five years to pay off your settled debt

What people are saying

Testimonials

I got myself into a position where I was in so much debt that I was drowning. I am now doing a consumer proposal and for the first time in years I feel relief and peace. Bromwich+Smith made me feel like I am not the only one going through this and that gave me encouragement. The team is friendly, professional and very helpful. I would highly recommend them to you. They will help.

Wendy

First let me tell you that had I known what a consumer proposal was years ago, I would’ve done this way sooner. I always thought hearing the commercials on TV and the radio that it was like a bankruptcy, and I would lose everything if I did it. I am so happy that I was recommended to Bromwich+Smith by a friend who explained that this wasn’t the case. We got notice today that our creditors have accepted and let me tell you the weight that has been lifted off our shoulders.

Candyce

While getting into debt is sometimes unavoidable, I am very glad the government has allowed people like Bromwich+Smith the ability to help you get out of it without bankruptcy. If you need help, please don’t be embarrassed and reach out to these guys. While they are a neutral party, they will do what’s best for you.

Kyle

When we finally decided to get help with our debt issues, we not only received help, but we received wisdom. It’s nice to go somewhere and not feel pressured, to feel accepted and to know we are not alone in dealing with the situation we found ourselves in. I would highly recommend Bromwich+Smith.

Desiree

My creditors told me that I would be ineligible for a proposal because I didn’t owe enough money. I am so happy I didn’t listen to them. Bromwich Smith were just wonderful and truly changed my life for the better. Now I can move forward with a clean slate, instead of drowning in old debts.

Samantha

I was in a bad place with my debt I had crazy car payments and a high credit card loan. They helped me through the whole process and made it really easy for me to understand. I could not be happier. They cut my payments in almost a third and I’m in a much better place.

Evan

Bromwich and Smith is an amazing company with truly amazing people who actually care and work tirelessly to improve your life. Working with them was a shining light in a really dark situation for me. Now I can focus on brighter days ahead.

Questions answered

FAQ’s

We’ve put together a list of common questions and answers about consumer proposals. A Licensed Insolvency Trustee can also walk you through all your options and answer any questions you have.

How much does a consumer proposal cost?

The calculation of your costs will depend on your income and your ability to pay. All costs are federally regulated and prescribed by a tariff contained in Canadian insolvency legislation. All costs associated with filing a consumer proposal are included in your monthly payment and approved by your creditors to cover all costs and payments to your creditors. You’re not charged upfront for any costs and there are no hidden fees. Please speak to one of our insolvency experts who can determine the total fees paid.

What happens to my credit cards in a consumer proposal?

Generally, when you file a consumer proposal, you will need to hand over your credit cards that were included in your proposal to creditors to your Licensed Insolvency Trustee. You will not be able to apply for a new credit card while you are making payments on your proposal. You may be eligible to qualify for a prepaid or secured credit card.

What kind of debts cannot be included in a consumer proposal?

There are several debts that do not qualify to be included in a consumer proposal. These include:

Fines and penalties imposed by a court
Child support and maintenance
Spousal alimony
Any award by court for damages for intentionally inflicting bodily harm, wrongful death or sexual assault
Debts or money owing due to fraud, embezzlement, misappropriation or misconduct
Money owing for things stolen
Student loans (if it has not been seven years since your last date of study)
Liability for any dividend a creditor would have been entitled to receive when you failed to disclose the creditor to your trustee

Can a consumer proposal help eliminate student loan debt?

If you have been out of school for at least seven years, you can include your student loan debt in a consumer proposal. This seven year “rule” only applies to government-issued student loans. If it has been less than seven years since you were a student, the Bankruptcy and Insolvency Act in Canada excludes government guaranteed loans.

How does filing a consumer proposal impact my credit rating?

Filing a consumer proposal will negatively impact your credit rating. Filing a proposal will result in an R9 credit rating. Once you have paid the debt in full, your rating will change to R7. A consumer proposal will be removed from your credit report three years after you have paid off your debt, or six years after the date your proposal was filed, whichever comes first.

Still have a question?

If you are struggling with debt and want to know if a consumer proposal is the best debt relief solution for you, give us a call. We offer free, confidential, non-judgmental consultations to better understand your unique situation and we will find an option to help you become debt free.

Get in touch

Managing debt can be difficult, but we’re here to help. Our Insolvency Advisors can show you your options and help you choose the best plan for you.

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1-855-884-9243

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