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What Are the Benefits of Filing a Consumer Proposal Rather Than Filing for Bankruptcy?

Consumer Proposals, a company that specialises in debt consolidation, can help you reduce your debt by a large amount without charging you any more interest or fees. This makes Consumer Proposals a realistic option for many people who want to settle their debts in a way that fits their individual circumstances.

To their surprise, Canadians are now discovering that the Consumer Proposal has been around since the early 1900s and is now a popular alternative to bankruptcy in Canada.

Considerations for selecting a Consumer Proposal

Terms that can be changed at any time

When you submit a Consumer Proposal, you agree to repay only a reasonable portion of your total debt in order to completely eliminate your debt obligations. As an illustration, the terms of a Consumer Proposal can be tailored to meet the needs of a range of situations, such as those involving:

· In a Consumer Proposal, no interest or other fees are applied to any portion of your aggregated debts that have been consolidated.

· There is no such thing as a “minimum word” that must be included in a Consumer Proposal. Alternatively, Consumer Proposals can be completed with a single, lump-sum payment or with payment periods that can be extended for as long as 60 months.

· When it comes to paying off a Consumer Proposal in full, there is no time restriction.

In contrast, the length of the bankruptcy and bankruptcy payments are regulated by law, and are generally based on your entire income, as opposed to your monthly expenses. You must wait at least nine months and up to two years after filing for bankruptcy before you can be discharged (released) from your debt obligations. When it comes to being discharged from bankruptcy, the amount of time you must wait is non-negotiable.

Take Steps to Prevent Insolvency

A consumer proposal is a fantastic alternative to consider if you truly want to return the debt to the extent that it is possible for you to do so under the circumstances. A consumer proposal is a viable alternative to bankruptcy.

A History of Credit

In contrast to personal bankruptcy, which will remain on your credit report for six years, the settlement of your Consumer Proposal will be recognised for only three years.

There are tools and services provided as part of either procedure that can be used to profit from the “fresh start” benefits. A credit application can be submitted at any time.

Additional Resources

Exemptions under BC law safeguard many of your assets from being seized in the event of a bankruptcy. A person’s assets may exceed the BC asset exemption limits despite the fact that most people in personal bankruptcy retain all of their possessions. A Consumer Proposal may be a good choice if you desire more control over your assets and the guarantee that some of your assets will not be subject to interest charges from your creditors.

Fixed Payments

If your income rises throughout the term of your settlement, you won’t have to worry about paying more in monthly instalments. Your debts will rise as your income rises if you file for bankruptcy.

Reduced Invoices

You only have to pay back a percentage of your debt if you go through a consumer proposal. If you go with this option, you could save up to 70% on your debt. Additional savings can be made as a result of this, as interest accruing on your loan is stopped.

Protecting Your Creditors

The majority of your creditors must agree to a consumer proposal in order for it to be legally enforceable, so you are safe from harassing phone calls, wage garnishments, and other legal threats.


Neither a Consumer Proposal nor bankruptcy restricts your ability to work for yourself. Bankruptcy, on the other hand, places limitations on the type of corporate structure that can be used while seeking bankruptcy relief. A consumer proposal permits you to continue as a director of a limited business even if you are bankrupt, as long as you have finished the bankruptcy procedure and received a discharge from bankruptcy.

If your professional accreditation prevents you from filing personal bankruptcy, you may be allowed to do so through a Consumer Proposal. However, you can get more information on Consumer Proposals at Fisher and Associates.

The news and editorial staff of Black Press Media had no role in the preparation of this post. The views and opinions expressed in this sponsored post are those of the advertiser and do not reflect those of Black Press Media.

Black Press Media does not accept liability for any loss or damages caused by the use of any products, nor do we endorse any products posted in our Marketplace.

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