Consumer Proposal: Overview
A simple, government-approved way to reduce your debt and get a fresh start.
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What is a Consumer Proposal?
It is a deal that is put in place with your creditors to repay a percentage of your total amount of debt, in exchange for debt forgiveness for the remainder.
A consumer proposal is a legal form of debt settlement, in line with the Bankruptcy and Insolvency Act. For most Canadians, it can reduce your debt by up to 80% while enabling you to keep your assets. Consumer proposal must be filed with the support of a Licensed Insolvency Trustee who will support you through each step of the process.
Find Out How Much You Can Save With a Consumer Proposal!
Try our easy-to-use calculator and learn how much a consumer proposal could cut down your debt.
A Consumer Proposal: How It Can Protect You
A consumer proposal can stop collection calls, wage garnishments, and legal action — giving you space to breathe.
It consolidates your unsecured debt into one affordable monthly payment, often reducing what you owe by up to 80%. Filed by a Licensed Insolvency Trustee, it’s legally binding and interest-free. You’ll keep your assets and gain peace of mind with a clear, structured path toward debt freedom.
Overview
What Debts Apply to a Consumer Proposal?
Most unsecured debts can be reduced in a consumer proposal, including the following:
- Credit card debt
- Unsecured lines of credit
- Bank loans
- Personal loans
- Payday loans
- Overdrafts
- Unpaid bills
- Accounts in collection
- CRA / Tax debts
- Some types of student loan debt (when you have been out of school for at least seven years)
Secured debts (like mortgages and car loans) cannot be included as part of a consumer proposal. Despite this, filing a consumer proposal can make paying off your secured debts much more manageable by substantially reducing your other debts.
eligibility criteria
Who Can File for a Consumer Proposal?
In Canada, you can file a consumer proposal if you meet the following eligibility criteria:
- You can afford to repay at least some of your debts;
- You are insolvent;
- Your unsecured debt is no greater than $250,000 (excluding your mortgage);
- You are a Canadian resident or own property in Canada.
A consumer proposal is an excellent debt relief option if your income is sufficient enough that you may need to make surplus income payments — or you foresee an increase in your income — and you would like to avoid bankruptcy.
where to start
What’s the First Step for Debt Help?
The first step is to speak to a Licensed Insolvency Trustee.
(LITs) Licensed Insolvency Trustees are the only professionals in Canada legally able to file all forms of debt relief. At Spergel, our experienced Licensed Insolvency Trustees offer the following:
- Free consultations
- Meetings with you as often as you need
- A review of your financial situation and an explanation of all your debt relief options
- Affordable debt relief solutions
- A 99% acceptance rate on any consumer proposal we file
Everyone’s Situation is Different. Let’s Talk About You.
Book a free call with Spergel today, and we will make a plan with you on how to help.
Real Canadians. Real Success — Like Larissa
“I can’t thank Spergel enough for their support and expertise during one of the toughest times in my life. Their consumer proposal not only reduced my debt significantly but also stopped the constant stress of creditor calls. Now, I’m able to focus on providing a stable future for my children without worrying about money. And, I can now sleep at night! Spergel truly gave me a fresh start.”
– Larissa, Ontario
Larissa’s Story is just one of many
It shows that once you face your debt and get the right help, life can get better – quickly. Discover more Success Stories of Canadians we’ve helped, or reach out to us.
How We’ve Helped Others
Every debt story is different — and so is every solution. Here’s what real clients had to say about working with Spergel.
We Know the Hardest Part is the First Step
It’s also the most important step. Let’s talk – we guarantee that we can help you.
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