Consumer Proposal: Cost
Find out how much a consumer proposal could cost — and how it can help reduce your total debt without extra interest or hidden fees.
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What will a Consumer Proposal cost me?
For debtors to have a successful consumer proposal, the payments must be reasonable and manageable. For creditors to accept, they will need to receive more than they would otherwise via a bankruptcy.
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 Much Can You Save?
Depending on your financial situation, a consumer proposal can reduce your unsecured debt by up to 80%.
It stops interest, collections, and legal action, all while letting you keep your assets. You’ll make one manageable monthly payment — and gain peace of mind along the way.
What you pay
How Much Do You Save With a Consumer Proposal?
The savings of a consumer proposal in Canada are dependent on a few key factors:
Your Income
Your income and any surplus income you would pay in a bankruptcy
Your Assets
Any assets you have that would be surrendered in a bankruptcy
Your Creditors
The creditors you owe, and the potential outcome they will expect from a consumer proposal
The Short Answer? Every Consumer Proposal is Different.
Once all of these factors are taken into consideration, your Licensed Insolvency Trustee will look into what you can reasonably afford to pay your creditors. What you pay is ultimately based on the negotiations you and your Licensed Insolvency Trustee can achieve with your creditors.
Although every consumer proposal is different, they can often reduce your repayments to as low as 20% of the original amount of debt owed. As consumer proposal can last for up to five years, you can spread out your payments across this period to make them even more affordable. Creditors are likely to be in favour of this also, as they may earn more over time.
Every situation is different, and at Spergel, we walk you through each step of the consumer proposal journey. Unlike other bankruptcy firms, you are assigned your very own Licensed Insolvency Trustee to walk you through the entire end-to-end process, instead of being passed from person to person.
Book a free consultation with Spergel today, and we will calculate a payment plan for you to get started.
Payments
How Are the Payments Negotiated?
Your (LIT) Licensed Insolvency Trustee will help to strike the balance between affordability for you, and an amount that your creditors are likely to accept.
Consumer proposal payments are a negotiation made by your Licensed Insolvency on your behalf, and your creditors. Your Licensed Insolvency Trustee will review your financial circumstances and budget, and recommend an affordable amount to propose to your creditors.
Your consumer proposal can be paid over a period of up to 5 years, and all payments are interest-free. You also have the option to make lump sum payments on your consumer proposal, and you can pay it off early if you wish.
Fees
Is There Any Interest or Hidden Fees?
There are no additional fees for a Licensed Insolvency Trustee on top of your consumer proposal monthly payments.
At Spergel, you do not make any payments until your consumer proposal has been officially filed. We do not charge any additional fees. We also offer flexible payments that help make your life easier when it comes to managing your finances.
Next Step
How Do I Get Started?
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.
important note
How does a Licensed Insolvency Trustee Get Paid from a Consumer Proposal?
You may think that filing a consumer proposal is a way for Licensed Insolvency Trustees to charge you fees, although this is far from the reality.
The cost of administering your consumer proposal is actually factored into your agreed monthly payments. No additional costs are charged as part of the consumer proposal fee; everything is included in the amount you negotiate with your creditors. Any fees paid to a Licensed Insolvency Trustee are set by the Canadian government and come from the monthly payment. This amount over time includes:
What Comes Out of a Monthly Consumer Proposal Payment Over Time:
Administration Cost
An administration fee of $100, paid to the Office of the Superintendent of Bankruptcy
Credit Counselling
The fees for two mandatory credit counselling sessions, at $85 each
Consumer Proposal Fee
Consumer proposal fees to the Licensed Insolvency Trustee of $1,500 plus 20% of creditor distributions
Creditor Distribution Levy
A 5% levy of creditor distributions, paid to the Office of the Superintendent of Bankruptcy
Once these fees have been paid from your monthly consumer proposal payments, any creditors who have claimed a stake in your consumer proposal will then receive their share of the balance. Instead of you having to pay Licensed Insolvency Trustees on top, your creditors essentially cover the cost of a consumer proposal for you.
Book a free consultation with Spergel today, and we will calculate a payment plan for you to get started.
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.
Real Stories from People Just Like You
See how others have taken control, found relief from debt, and started fresh with help from Spergel.
Find Out How Much You Could Save With A Consumer Proposal
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