Consumer Proposal Campbell River

Understanding Consumer Proposals in Campbell River: A Comprehensive Guide

The financial world can be a maze of intricacies and complexities. One such aspect that often puzzles individuals is the Consumer Proposal. In this guide, we will delve deep into the concept, uniquely focusing on the Consumer Proposal in Campbell River.

What is a Consumer Proposal?

A Consumer Proposal is a legal arrangement sanctioned by the federal government, enabling individuals to repay a portion of their debt to creditors. It serves as a potent tool in the arsenal of debt relief options, providing considerable protection against debt collectors and freezing interest accumulation on your debt.

Who Can Set Up a Consumer Proposal in Campbell River?

A Consumer Proposal in Campbell River can only be filed through a Licensed Insolvency Trustee (LIT). The LIT plays a pivotal role in crafting a proposal that suits your financial circumstances and submitting it to your creditors.

201-990 Cedar Street, Campbell River, BC, V9W 7Z8

Campbell River Consumer Proposal Office

The Costs Involved

As per the Bankruptcy and Insolvency Act, the cost of setting up a Consumer Proposal revolves around $1,500. This comprises an initial setup fee and a balance payment post the proposal’s acceptance by your creditors. The trustee retains 20% of your future payments as their administrative fee.

Qualifying for a Consumer Proposal in Campbell River

To be eligible for a Consumer Proposal in Campbell River, you need to meet the following criteria:

  1. You live or conduct business in Canada.
  2. Your debt ranges between $1,000 and $250,000, excluding the mortgage on your principal residence.

While these are the basic requirements, the suitability of a Consumer Proposal depends on your unique financial situation. Thus, it’s advisable to consult with a Licensed Insolvency Trustee to assess your options better.

How to Apply for a Consumer Proposal?

The application for a Consumer Proposal must be filed through a Licensed Insolvency Trustee. They will prepare a proposal based on your financial condition and submit it to your creditors. Once the proposal is registered with the Federal Government, you’re relieved from making direct payments to your unsecured debt, and creditors are legally bound to stop collection activities against you.

What Happens After the Proposal Submission?

After the proposal submission, creditors have 45 days to accept or reject the proposal. If accepted, you’re required to fulfill certain responsibilities, such as making scheduled payments and attending counseling sessions with your LIT.

The Potential Outcomes of a Consumer Proposal

While in most cases, Consumer Proposals get approved on their first submission, there may be instances where they could be rejected. In such cases, you have several alternatives:

  • Revise and resubmit the proposal.
  • Withdraw the proposal and continue with your previous financial arrangements.
  • Explore other financial solutions.
  • File for bankruptcy.

Your LIT will guide you in choosing the best course of action in such situations.

The Duration of a Consumer Proposal

Typically, the repayment period for a Consumer Proposal lasts between 4 to 5 years. However, you can choose to complete your payments sooner to improve your credit rating. The maximum repayment duration is just under 5 years.

Types of Debts Covered Under a Consumer Proposal

A Consumer Proposal primarily covers unsecured debts including:

  • Credit card debts.
  • Lines of credit.
  • Overdrafts.
  • Income tax debt.
  • GST/HST debt.
  • Student loans.
  • Payday loans.
  • Installment loans.
  • Shortfall from a mortgage foreclosure.

Secured debts like car loans are generally not included in a Consumer Proposal.

The Pros and Cons of a Consumer Proposal in Campbell River

Like any financial option, a Consumer Proposal comes with its own set of advantages and disadvantages. Here’s a quick look at them:


  1. It significantly reduces the amount of debt you need to repay.
  2. It provides protection against debt collectors.
  3. It freezes interest accumulation on your debt.
  4. It offers a more flexible and less intrusive process than bankruptcy.


  1. A Consumer Proposal is a public record and can be accessed via a searchable database.
  2. It costs more than filing for bankruptcy.
  3. The court must approve it.
  4. Creditors can choose to reject the proposal.


A Consumer Proposal in Campbell River can be a viable debt relief option if you’re struggling to repay your debts. However, it’s essential to understand the process thoroughly and consult with a Licensed Insolvency Trustee to ensure it’s the right fit for your financial situation. Remember, the key to financial stability is informed decision-making.

Contact Us Today

We help Campbell River residents get out of debt with our government licensed consumer proposal services.

Benefit from the Personal Touch of a Licensed Consumer Proposal Expert in Campbell River

Bankruptcy Canada is a respected group of licensed insolvency trustees who can offer expert advice and tailored debt relief solutions to individuals and businesses in Campbell River, regardless of their financial circumstances. We make diligent efforts to assist debtors in eliminating their debts and getting a fresh financial start. We can help lessen our clients’ debt burdens while upholding their dignity, stop wage garnishments, stop collection calls and stop all legal court actions against you.

Get out of Debt and have family bliss and happiness
We can help you determine whether a consumer proposal is right for you

A Consumer Proposal is your Chance for a Fresh Start in Campbell River.

Call for a free and confidential consultation at our Campbell River Office for immediate help with debt relief through a Consumer Proposal in Campbell River.