A Consumer Proposal is an option available to individuals and businesses in which we help and arrange to make an offer to your creditors to modify your payments. It may result in a lower, more manageable monthly payment over a longer period of time, or it may result in your creditors’ agreeing to accept a percentage of your total debt.
You are eligible to make a consumer proposal as an insolvent individual when your total debt is not more than $250,000. If a majority of your creditors approve the proposal, all your unsecured creditors must, by law, accept it also.
Two or more individuals may make a joint proposal when they may reasonably be dealt with together because of their close financial relationship.
When debts exceed $250,000, a proposal must be made under Division I, Part III, of the Act. This generally applies to small- to medium-sized businesses. Usually, the proposal asks unsecured creditors to accept a portion of the full amount owed. Secured creditors are negotiated individually. Call us for information specific to larger, more complex proposals.