It’s not another payment.
It’s a solution to your debt problems.™

Consumer Proposal

A consumer proposal is a formal, legally binding process where you develop a “proposal” – an offer to pay back a percentage of what is owed to your creditors, or extend the time you have to pay off the debts, or both. In its most basic sense, a consumer proposal is essentially a repayment plan where you pay back your creditors, often a fraction of what you owe them.  Think of it as a consolidation loan without any interest charges and for only a fraction of the total amount owed!

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You owe at least $1,000.00 and up to $250,000.00 (not including your mortgage) and you are unable to repay your debts.
Your total debts exceed the value of your assets.
You have the ability to make monthly payments.

IS A Consumer Proposal RIGHT FOR ME?


  • Pay back only a percentage of the total amount you owe.
  • It is a legally binding agreement. No false promises.
  • One affordable monthly payment covers all fees and payment to your creditors.
  • Avoid filing for bankruptcy.
  • Protect your assets.
  • Stops all future interest charges.
  • Stops all garnishments of your pay.
  • Stops all collection calls.
  • Stops legal actions taken by your creditors.
  • Proposal payments can be up to a period of 5 years. This helps to keep your monthly payments to an affordable amount.
  • A better credit rating than a bankruptcy (an R7 vs. an R9 in a bankruptcy).
  • Give you a Fresh Start. This could be the solution to get yourself out of your debt problems and rebuild your life.


  • Not all debts are discharged (erased).
  • Creditors vote if they want to accept or reject your proposal.
  • Income or financial assistance (from family or friends) is required to fund the monthly payments.
  • Results in an R7 credit rating and stays on your records for 3 years after your last payment.
  • If you miss three payments, it is automatically cancelled.

How much does a consumer proposal cost?

The costs of filing your consumer proposal is paid entirely out of your monthly payment to the Consumer Proposal Administrator.  That’s right – 1 monthly payment covers everything!

  • All of the administrative costs of filing the documents.
  • Fees of the Proposal Administrator.
  • The amounts that are paid to your creditors.

Frequently Asked Questions

  • What is a Consumer Proposal?

    Is a formal legally binding process where a person makes a “proposal” to pay back the unsecured creditors a portion of what is owed to them, or extend the time to pay them back, or a combination of both. A consumer proposal can only be administered by a Licensed Insolvency Trustee.

  • Who can file a Consumer Proposal?

    To file a consumer proposal, you must:

    • Owe at least $1,000.00 and up to $250,000.00 (not including your mortgage) and you are unable to repay your debts
    • Have the ability to make monthly payments
    • Your total debts exceed the value of your assets.
  • How does the process of filing a Consumer Proposal work?

    When you contact Chande & Company, we will review your current situation and tell you of all the options that are available to you in dealing with your debts. Once the best option is selected we will then:

    • Prepare all the required legal documents for you to sign;
    • We will then file the signed proposal documents with the Office of the Superintendent of Bankruptcy so that the process becomes legally binding;
    • At this point, we will send the necessary legal documents to your creditors and advise them of your consumer proposal;
    • We will deal directly with your creditors so that you will not have to
    • The creditors have 45-days to review and consider your proposal – do they want to accept or reject your consumer proposal;
    • At the end of the 45th day, we review the votes submitted by your creditors. As long as the majority of the creditors vote in favour of the proposal, the proposal is accepted and binding on all the creditors;
    • Once accepted, you make your payments directly to Chande & Company (your consumer proposal administrator) who will deal directly with your creditors and make payments to them according to terms of your proposal;
    • Now, what happens if at the end of the 45th day, the majority have not accepted your proposal or if more than 25% have requested a meeting of creditors?;
    • When this happens (not too often but occasionally it does happen) we contact your creditors to find out what would be acceptable to them to vote in favour of your proposal. In most cases, it is often as simple as increasing the monthly payments by a small amount. If this happens, we amend your proposal to the new terms
    • You always have the option of filing for bankruptcy if what the creditors are seeking is unreasonable. However, since the creditors realize that this is always an option for you if they don’t accept your proposal, they will generally accept all reasonable proposals.
  • How much does a consumer proposal cost?

    The costs of filing your consumer proposal is paid entirely out of your monthly payment to the Consumer Proposal Administrator. The monthly payment covers everything:

    • All the costs of filing the documents;
    • Administering your consumer proposal throughout the entire process;
    • Fees of the Proposal Administrator;
    • The amounts that is paid to your creditors.
  • How much do I offer in my consumer proposal (does everyone pay the same amount)?

    The amount that you offer in your consumer proposal is generally determined by some common factors (though this list is not all inclusive) such as:

    • How much do I earn each month;
    • If I were to file for bankruptcy, would I have to make Surplus Income Payments? If so, how much would I need to pay?
    • What assets, if any, do I own?
    • Are my assets, exempt or not-exempt assets?
    • Other factors (unique to individual factors). Call us and we would be happy to advise you.
  • What is an R7 credit rating?

    A person making regular payments through a special arrangement to settle their debts will receive a R7 credit rating. Debts settled through a consumer proposal will be rated as a R7.

  • What happens if I miss my consumer proposal payments?

    During the course of a consumer proposal, it is important that monthly payments are made on time. If you miss three payments during the term of your proposal, you will be in default and the proposal will be annulled. This means that your proposal has been brought to an end. The debts owing to unsecured creditors will not be discharged and your creditors can begin to seek payment from you directly as the protection from creditors is lifted.

  • Why should I choose a consumer proposal over bankruptcy?

    Filing either a consumer proposal or bankruptcy will help in your debt problems and protect you from legal actions against your creditors. The key differences between a consumer proposal and a bankruptcy are listed in the summary below.screen-shot-2016-09-30-at-3-18-31-pm