Consumer Proposal

Consumer Proposal

Thousands of bankruptcies are filed out by Canadians every week. But what if there was a way to deal with your debt without the dreadful consequences of going bankrupted? Consumer Proposal can be a great alternative to resolve your debt problems with creditors. The process of filling one out is usually very easy and the impact is less damaging than a bankruptcy. However, before filling a Consumer Proposal, it is extremely important to know how this type of debt consolidation works and why it is better than filing for bankruptcy. There are also some companies that we suggest over others for the good services they have been providing for many years.

What is a consumer proposal?

A Consumer Proposal is an alternative to a bankruptcy for people who owe between $5000 and $250,000 or more to multiple creditors. This solution will take a proactive role in your debt problems to propose settlement, based on your income, to the creditors. Once the proposal is accepted, regular monthly payments will be made to the agency dealing with your proposal and they will redistribute the money to the recipient.


Consumer Proposal or Bankruptcy?

Less impact on your credit score

While a bankruptcy will affect your credit for at least six years, a consumer proposal is way less damaging and can only affect your credit score for a maximum of five years. This less severe impact on your credit score will also increase your chances of getting loans and/or mortgages once your consumer proposal has been fully paid.


Regular Payments

When filing a Consumer Proposal, you will often be allowed to make regular payments.  Those regular payments will help you establish and maintain a manageable budget for all your expenses throughout your proposal. Plus, if ever during your proposal your income increases, the payments will remain the same, allowing you to save money while paying the companies that you owe.


No cumulative interest

When your consumer proposal is accepted by the concerned companies, all interest will stop to be cumulated. Therefore, the amount you owe will not go up every month and will stay the same until the end of the proposal.


Coverage of your personal assets             

This type of debt repayment will allow you to protect and cover your personal assets. Consequently, your registered retirement savings plan will be left untouched as well as your home, car or other valued possessions.


No monthly report

While a bankruptcy requires you to complete a monthly report of your income and expenses, there is no reporting or monthly tasks involves in a consumer proposal.



You are still full entitled to receive tax refunds when you are in a consumer proposal.


The 5 best companies in Canada


Consolidated Credit Counselling Services of Canada

Since 2005 this company has been helping Canadians with their debt consolidation in many ways. As well as guiding them through the consumer proposal process, the professionals also cooperate with their customers to make sure they understand their rights and the laws attached to a debt consolidation. Online chat is available on their website as well as online consultation, making it even easier to reach out for their help.

Web site:

Toll Free phone number: 1-888-287-8506


K3c Credit Counseling

With 10 different offices across Ontario, K3c credit counselling is well known for their debt management program. This program lets customers make only one monthly payment directly to their agency as they will split your payment and redistribute it to the creditors. Therefore, customers don’t have to deal with multiple payments and complicated bills as they are all dealt directly by k3c.

Web site:

Toll Free phone number:  1-800-379-5556


Full Circle Total Debt Solutions

With a 98% acceptance rate, Full Circle offers Consumer Proposal services to Ontario, Alberta and British Columbia. Every customer with an approved proposal will get two financial counseling sessions with a professional from the agency, as well as easy monthly payments made troughs the Trustee.

Web site:

Toll free phone number: 1-877-220-3328


Credit Counseling Society

Accredited by Credit counselling Canada, this company offers service in Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, Yukon, Northwest Territories and Nunavut. Credit counseling society offers up to 5 years to consolidate your Consumer Proposal with payment’s that will be based on your income and on what you own.

Web site:

Toll Free phone number: 1-888-527-8999



Located in Toronto Canada X-Banker provide fast and simple services. To help their customer solve their debt problems and handle the frustrations that comes with those problems.

Web site:

Toll free phone number: 1-888-442-0445



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