Highlights

• 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.