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    HomeAnswersWhat is a consumer proposal in Canada?
    Debt

    What is a consumer proposal in Canada?

    Quick answer

    What is a consumer proposal in Canada?

    A consumer proposal is a legally binding deal, filed through a Licensed Insolvency Trustee, to repay a portion of unsecured debts (often 25%–50%) over up to five years. It stops collection calls and interest.
    • Eligibility: unsecured debts under $250,000 (excluding a mortgage on your principal residence).
    • Credit impact: it stays on your report for three years after completion (or six from filing, whichever comes first).
    • Compared to bankruptcy: you usually keep assets like your home and car.

    Start with a free consultation with a Licensed Insolvency Trustee or a non-profit credit counsellor.

    Related Questions

    What is a consumer proposal in Canada?

    A consumer proposal is a legally binding deal, filed through a Licensed Insolvency Trustee, to repay a portion of unsecured debts (often 25%–50%) over up to five years. It stops collection calls and interest.

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