If you live or work in Canada and have Canadian debt, you are eligible to file a consumer proposal, however, it is up to your licenced insolvency trustee (or accredited credit counsellor) to determine if it makes sense for you to file. In general, you can expect the following of a consumer proposal in Canada:

  • Your total debt amount will be reduced
  • You will make a single monthly payment
  • You will have up to 5 years to repay
  • Creditors will stop collection calls/letters
  • Creditors will not be able to garnish wages
  • You will not lose your house or vehicles
  • You will not lose your RRSPs, RESPs, or TFSAs