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Consumer Proposal

Who Should File a Consumer Proposal?

By Jennifer Virani

To put it simply – If you are facing an overwhelming amount of debt that you are unable to repay, filing a consumer proposal might be a good option for you to consider. You should, however, review all options available and compare the pros and the cons of each. It can be tricky to get a grip on all the different options available to you, and more difficult still to understand what will be your personal best option. 


These are other debt solutions that are available to you to consider. Consumer Proposals are generally a very effective option, but not every situation is the same, and not every situation will be best solved by a consumer proposal. Here are other options you should be aware of in your debt repayment journey:

  • Consolidation loans
  • Refinancing your home
  • Informal debt settlement
  • Non-profit credit counselors


So what are the benefits of filing a consumer proposal?

A consumer proposal offers the debtor an opportunity to:

  • Relieve financial stress by finding affordable terms to repay the debt.
  • Stops creditor calls, wage garnishments, and legal action from creditors.
  • Usually reduces the principal amount owed with interest-free repayments terms.  


What are the negatives of filing a consumer proposal?

The main negative is the impact on your credit rating, reporting as an R7 for the length of time it takes you to pay off the debt plus an additional three years, to a maximum of 6 years.  
While this may seem like a lot to consider, remember that you don’t have to do it alone. At 4 Pillars we can walk you through your options, look at your debt and find you the best option to fit your lifestyle. Our expert team has years of experience helping people resolve their debt, so they can get their life back on track. If you’d like to speak to a 4 Pillars representative in your area get in touch with us today.

Jennifer Virani is the local 4 Pillars Debt Consolidator in North Vancouver, contact her for Consumer Proposal help and advice here.

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