Consumer Proposal: Benefits

Reduce your debt, stop collection calls, keep your assets, and make one affordable monthly payment — all with government protection.

Want to Skip the Info?

Let’s Talk!

We’ve got you covered:

What are the Benefits of a Consumer Proposal?

The primary advantage of filing a consumer proposal is that it can mean a reduction in your debts by up to 80%.

Aside from filing bankruptcy, a consumer proposal is the only legally binding form of debt relief that protects debtors from their creditors. This means any wage garnishments, lawsuits, and contact from creditors will be blocked.

Debts are consolidated into one affordable interest-free monthly payment, and there is an immediate freeze on any interest and penalties owed.

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.

Debt Calculator

A Consumer Proposal: How It Can Protect You

A consumer proposal can pause collection efforts, stop wage garnishments, and protect your assets.

It’s a legal agreement that helps you settle your debt for less while avoiding bankruptcy — and gives you the breathing room to rebuild. With fixed monthly payments and no interest, it’s a realistic path toward lasting financial relief.

Compare Options

benefits

Discover All the Advantages of Consumer Proposal

The #1 bankruptcy alternative in Canada, a consumer proposal offers a huge reduction in your debt without the consequences faced in bankruptcy. Here are some of the key benefits:

Less Pay-Back

Reduction in your debt of up to 80%

Debt-Freedom Timeframe

Debt free within three to five years

Assets Protected

Keep your assets, including your home, equity, and car

Affordable Payments

Straightforward, affordable monthly payments that are fixed

No More Penalties

Freeze any interest and penalties on your debts

Avoid Bankruptcy

Avoid bankruptcy and its consequences on your credit score and employment

Stop Collection Calls

An end to collection calls from your creditors and legal action like wage garnishments, placement of liens, and bank account freezes via a stay of proceedings

Avoid Surplus Income Threshold Changes

Avoid surplus income should you receive salary increases or additional income

Book a free consultation with Spergel today, and we will calculate a payment plan for you to get started.

Get Started

Considerations

What to Consider When Filing a Consumer Proposal

As with any upside of a debt relief solution, there is always a downside. Here are some things to consider:

The length of a consumer proposal.

Consumer proposal typically take longer to complete than a bankruptcy. If, however, you have an increase in income, you can repay your consumer proposal early.

Your credit score will be impacted.

Filing a consumer proposal will affect your credit, showing as a R7 rating and remaining for 3 years after completing your consumer proposal. This is not as severe as the credit score impact of a bankruptcy.

The requirement to stick to your proposal terms.

You will need to make all your consumer proposal payments and fulfil any requests of your Licensed Insolvency Trustee in the terms of the agreement. Should you fall behind on payments, your consumer proposal terms will be ended and you will regain any associated debt.

We always recommend booking a free, no obligation consultation with an expert Licensed Insolvency Trustee at Spergel. Our trustees will review your unique financial circumstances and recommend the best pathway to debt relief for you.

What Will it Cost Me?

next step

How Do I Get Started?

The first and most important 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.

Use Our Quick Form

Choose a Date/Time

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

Read Larissa’s Story

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.

Reach Out