Consumer Proposal

Repay a portion of what you owe without the impact of bankruptcy

A consumer proposal is filed through a Licensed Insolvency Trustee and a viable restructuring option for over 45,000 Canadians a year. It allows the consumer to seek legal protection from their creditors under a Federal Statute (Bankruptcy and Insolvency Act) whereby a debtor usually only repays a portion of what they owe interest free.

Read our guide to consumer proposals and debt consolidation

Consolidated Loan

If you're worried about the impact debt restructuring is going to have on your credit rating, a consolidation loan may be your best option if you're able to qualify. We can review your situation and advise if this is the best route for you, standard criteria to qualify and where best to apply.

Corporate Restructuring

Businesses are just as challenged as individuals. Our sister company, Corporate Transition Group gives you practical and specific advice to get your business healthier.

Learn more about corporate restructuring...


  • Pay back a percentage of what you owe without interest or penalty
  • The repayment period is up to 60 months
  • The repayment amount is based on your budget and ability to pay

Consumer Proposal Benefits

  • Most wage garnishments cease immediately
  • Interest stops accumulating from the day the consumer proposal is filed
  • Collection agencies and creditors can no longer contact you
  • Consumer proposals do less damage on your credit bureau than a bankruptcy by reporting an R7 instead of an R9 and it is easier and quicker to start rebuilding your credit

Through this process a debtor is required to give "full disclosure" of all their assets, liabilities, income and expenses as well as business interest as part of the process.

Additional Information

  • You must be insolvent to file a consumer proposal (debts are more than assets)
  • Your creditors are required to vote on the consumer proposal
  • A consumer proposal is an alternative to Bankruptcy
  • You cannot pick and choose the debts that are included (all debts must be included)
  • You cannot eliminate support or alimony allegations
  • You cannot eliminate student loans under 7 years old
  • You cannot include secured debts such as mortgage and car loans
  • You are allowed to keep assets based on Provincial legislation

4 Pillars represents the debtor to structure the payment terms of a consumer proposal which is filed by a bankruptcy trustee.

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