Can you keep assets with a consumer proposal?

Financial stability is the cornerstone of a secure life. However, the rapidly changing economic landscape can sometimes lead to overwhelming debt. If you find yourself in this situation, a consumer proposal might be the best solution for you. But the question arises: Can you keep assets with a consumer proposal? This article provides an in-depth answer to this question.

What is a Consumer Proposal?

A consumer proposal is a legal agreement negotiated between you and your creditors through a Licensed Insolvency Trustee (LIT). This agreement allows you to pay back a portion of your unsecured debt over a specific period, usually not exceeding five years.

Assets Retention: The Fundamental Difference

When you find yourself submerged in debt, you might consider bankruptcy as one of the options. However, a key difference between bankruptcy and a consumer proposal lies in the handling of assets. Bankruptcy may require you to liquidate some assets to repay your creditors. On the other hand, a consumer proposal typically allows you to retain your assets while settling your debts.

What Assets Can You Keep With A Consumer Proposal?

One of the significant advantages of a consumer proposal is the possibility to retain most, if not all, of your assets, such as:


Your home is often the most valuable asset you own. In a consumer proposal scenario, as long as you can make the mortgage payments and the agreed proposal payments, you can keep your home.


Similarly, you can retain your automobile provided you can manage both the auto financing and proposal payments.

Personal Possessions

Unlike in bankruptcy, a consumer proposal does not give your unsecured creditors a claim on your personal property.

Investments and Savings

Another benefit of a consumer proposal is that it typically protects your investments and savings, including your Registered Retirement Savings Plans (RRSPs).

Tax Returns and Government Benefits

You can also retain your tax returns and any government benefits you are entitled to, such as the Child Tax Benefit, Old Age Security, and Canada Pension Plan.

Comparison of Debt Solutions

The debt solution you choose should depend on your unique circumstances, the amount you owe, what you want to keep, and how quickly you want to be debt-free. Here is a brief comparison of the most common debt solutions:

Consumer Proposal

A consumer proposal is a legal settlement offer to unsecured creditors, which you can repay over a maximum of five years. The payments are interest-free, and you usually end up paying less than the total amount you owe.


Bankruptcy is a legal process that provides relief from most of your debts. In this process, you may have to surrender some of your property to repay your debts.

Informal Debt Solutions

These include options such as orderly payment of debts, debt management plans, or directly negotiating with your creditors for a lower interest rate or monthly payment.

Considerations While Keeping Assets in a Consumer Proposal

While a consumer proposal allows you to retain your assets, it’s crucial to consider whether you can afford to keep them and whether it’s financially viable to do so. For instance, keeping your house or car would mean you must continue to make payments towards them, which could strain your budget.


In conclusion, a consumer proposal offers a flexible and less disruptive debt solution that allows you to keep your assets while you repay your debts. However, it’s crucial to get professional advice to ensure you make the best decision for your financial situation. A Licensed Insolvency Trustee can provide you with an unbiased opinion on the best option for you.

Remember, the primary goal is not just to get out of debt but to build a secure financial future. A consumer proposal might be a stepping stone towards achieving this goal. However, it’s imperative to understand the complete picture, including the potential implications for your assets, before deciding on this path.

Reach out for Professional Help

If you are considering a consumer proposal and wondering if you can keep your assets, reaching out to a professional can provide clarity. Licensed Insolvency Trustees are trained professionals who can guide you through the process and provide a free assessment of your options. They can give you an unbiased opinion on which solution would be best for you considering your unique situation.

Final Thoughts

The journey to becoming debt-free starts with a thorough understanding of your options. A consumer proposal can be an effective tool in managing and eliminating debt, especially if you wish to retain your assets. However, it’s essential to work with a professional to ensure it aligns with your financial goals and capabilities.

Remember, regardless of your current financial situation, there are always options available. Seeking professional advice can help you navigate your path to a debt-free future while maximizing the retention of your assets.

Understanding Can you keep assets with a consumer proposal is the first step towards a financially secure future.

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