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4 Pillars

Consumer Proposal

Consumer proposals allow you to repay a portion of what you owe without the impact of bankruptcy.
Here's a simple guide.

Consumer Proposal

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

File your consumer proposal through a Licensed Insolvency Trustee. It is a viable restructuring option for over 45,000 Canadians a year, allowing 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


  • Payback 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 rating than a bankruptcy by reporting as a "7" instead of a 9. So 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 obligations
  • You cannot eliminate student loans under seven 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 works with the debtor to fully understand all options to deal with debt and how each option fits with their budget.

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