Whether consumer proposal is worth it depends on what you need your consumer proposal to do. Consider the three L’s of consumer proposal:

  1. Do I need LEGAL protection from my creditors to stop wage garnishment or prevent a pending small claims court case?
  2. Will I pay LESS than the total amount of debt that I owe if I file consumer proposal based on my income, assets, and dependants?
  3. How will filing a consumer proposal LIMIT my ability to meet future financial goals such as homeownership or retirement?

Remember, the goal of a consumer proposal should always be to improve the situation. If you do not need legal protection from your creditors, will not benefit from reduced debt, or are concerned with credit impact, a credit-sparing alternative such as a Debt Management Program may be more appropriate.