Consumer Proposal: How to File

Learn the process step-by-step — from your free consultation to debt relief. Filing is easier than you think, and we’ll guide you through every part of it.

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What is the First Step to Filling A Consumer Proposal?

The first step in filing a consumer proposal is to find a reputable Licensed Insolvency Trustee. (LITs) Licensed Insolvency Trustees are the only professionals in Canada legally able to file all forms of debt relief.

A (LIT) Licensed Insolvency Trustee’s role is to work with you to review your financial circumstances and to look at your debt relief options, from debt consolidation to bankruptcy. They will determine if you are eligible for a consumer proposal, and will explain to you what a consumer proposal is and exactly how it works.

If eligible, they will collaborate with you to agree on an affordable repayment plan on your outstanding debts. They will then negotiate with creditors on your behalf to reduce your debt, and file your consumer proposal with the government.

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.

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A Consumer Proposal: How Does it Compare with Other Options?

When it comes to getting out of debt, you have options — but not all are created equal.

A consumer proposal is a legally binding agreement that can reduce your debt by up to 80%, freeze interest, and stop collection calls. Unlike bankruptcy, you keep your assets. Unlike debt consolidation, you don’t need a high credit score or new loan approval. It offers more protection and flexibility — with one manageable monthly payment and no hidden fees.

Explore how it compares to bankruptcy, consolidation loans, and credit counselling, and see which path fits your situation best.

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step-by-step

How to File A Consumer Proposal

There are some key steps in filing a consumer proposal in Ontario:

Book a Free Consultation With an LIT

This session is a complimentary debt assessment with an experienced trustee. They will be able to review your financial circumstances, explore your debt relief options, and advise as to whether or not filing a consumer proposal is right for you.

Discuss and Determine Your Repayment Plan

With your Licensed Insolvency Trustee, you will discuss your income, assets, and debts. Based on this information, together you will agree on how much to offer your creditors and what would constitute an affordable monthly repayment plan.

Filing Your Consumer Proposal

Your trustee will take care of the administrative paperwork to your creditors, including your proposed repayments and the payback period. These documents are then filed electronically with the government, and a stay of proceedings is put in place.

Put simply, this means you no longer need to pay your unsecured debts, and you are protected from creditors contacting you or pursuing lawsuits against you.

Creditors Are Contacted

At this stage, your trustee will share your consumer proposal with all creditors listed. Each creditor is given 45 days to review your proposal and to ask for a creditors meeting to discuss your proposal in further detail if required. They are still unable to contact you directly.

Creditors’ Decision

Creditors may ask for a meeting to ask questions if they are owed a minimum of 25% of your debts within 21 days of their request.

They will decide to accept or reject your proposal, and can suggest a new offer. Your trustee will be there to support you and negotiate a deal that works for both you and your creditors. If no meeting is requested, your consumer proposal is considered accepted.

Acceptance of Your Proposal & Credit Counselling

Once your consumer proposal has been accepted the only other obligation of filing a consumer proposal is that you will need to attend two credit counselling sessions to learn more about debt management. Avoid bankruptcy and its consequences on your credit score and employment.

Make Your Payments

The rest is simple – you make your affordable monthly payments as agreed, using the tools and insights gained from your credit counselling sessions.

Financial Freedom

When your payments have been completed, you will receive a Certificate of Full Performance to reflect that the terms of your consumer proposal have been met.

You will also receive clearance of any remaining debts owed from the proposal.

Still Have Questions?

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

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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.

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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.

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