If you have accumulated too much debt or you have lost your employment and income and cannot manage the payments one solution that may be available to you is a consumer proposal.
By filing a consumer proposal with creditors, which is a process that is administered by a trustee in bankruptcy under the Bankruptcy and Insolvency Act, you will be granted a period of time to pay debts.
In a consumer proposal, you make payments to the trustee and the trustee distributes the funds to the creditors. The arrangements may include lump sum payments and monthly payments for a period up to 5 years. After the required payments have been made, the trustee will issue a certificate to you that states that you have satisfied the conditions of the proposal.
There are a number of advantages to filing a consumer proposal as follows: