Are Consumer Proposals Often Refused?

99% of Consumer Proposals are Acepted – Here’s Why

Are you thinking of filing a consumer proposal?

If your debts are in danger of spiralling out of control, you might be wondering whether a proposal will be accepted.

This article contains all the information you need.

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A brief overview of consumer proposals

Consumer proposals are often considered as an alternative to bankruptcy in Canada.

A consumer proposal is a legal agreement, which is put forward by an individual with the help of a licensed insolvency trustee (LIT).

A LIT compiles a proposal, which is similar to a payment plan, outlining how much the individual can pay over a specified time-frame.

The proposal is sent to the creditors involved and they then vote on whether or not to accept it.

With a consumer proposal, debts are often reduced, and the debtor can pay in a lump-sum or via smaller regular payments.

Are consumer proposals often refused?

Consumer proposals are designed to be mutually beneficial for the individual in debt and their creditors.

As a consumer proposal is often employed as an alternative to bankruptcy, creditors stand to gain a lot more than they would if the individual was to file for bankruptcy.

An experienced licensed insolvency trustee will draw up a proposal, which is attractive to creditors to maximise the chances of a positive outcome.

As proposals are compiled with both the debtor and the creditors in mind, they have a very high success rate.

It is estimated that up to 99% of consumer proposals are accepted.

For creditors, the other option, bankruptcy, would contribute to them losing money, so a proposal is preferable.

Creditors are given time to mull over the proposal before deciding whether to support it.

They often calculate how much they stand to earn from the proposal and compare figures to potential gains from bankruptcy.

In many cases, the proposal leads to a much greater sum.

Even though it may take longer for the company to get its money back, the terms of a proposal are likely to be much more appealing.

How do I get started?

Personal insolvencies in Canada hit the highest level in a decade in October 2019.

If you’re worried about money, you’re not alone.

A consumer proposal is a proven method of clearing debts and reducing stress linked to financial difficulties.

Filing a proposal will put a stop to calls from creditors and help you pay off debts at a pace that is manageable.

To file a proposal, you will need to work with a licensed insolvency trustee.

Your trustee will draw up an agreement based on your individual circumstances and this will be sent to your creditors.


It is extremely rare for consumer proposals to be refused in Canada.

Up to 99% of proposals are accepted and this is largely due to the fact that agreements are designed to benefit both debtors and creditors.

If you need help with finding a trustee and putting a consumer proposal forward, we are ready and waiting to take your call.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal

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