Consumer Proposal Richmond

Consumer Proposals in Richmond, BC: The Ultimate Guide

Dealing with debt can be a daunting task, especially when it seems like there’s no way out. However, there are options available that can help you manage your financial situation more effectively. One such option is the Consumer Proposal in Richmond, British Columbia.

What is a Consumer Proposal?

A Consumer Proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT). In this process, the LIT will work with you to develop a “proposal”—an offer to pay creditors a percentage of what is owed to them, or extend the time you have to pay off the debts, or both.

How does a Consumer Proposal work in Richmond?

Firstly, it’s essential to understand that a Consumer Proposal is a legal process under the Bankruptcy and Insolvency Act. The process involves making a formal proposal to your creditors where you agree to pay back a portion of your debt over a specific period, which cannot exceed five years.

Here’s a step by step guide on how the process works:

  1. Consultation: The process starts with a free consultation with a Licensed Insolvency Trustee. During this meeting, the trustee will assess your financial situation to determine if a Consumer Proposal is the best option for you.
  2. Filing the Proposal: If a Consumer Proposal is deemed the best course of action, your trustee will file the proposal with the Office of the Superintendent of Bankruptcy (OSB). Once filed, all actions from your creditors, including wage garnishments and lawsuits, will stop.
  3. Review by Creditors: After the proposal is filed, your creditors will have 45 days to vote to accept or reject the proposal. For the proposal to be approved, creditors representing a simple majority of the total debt value must vote in favour of the proposal.
  4. Implementation: If the proposal is accepted, you will start making payments to the trustee based on the terms of the proposal. The trustee will then distribute these funds to your creditors.
  5. Completion: After all the payments have been made and the terms of the proposal have been fulfilled, you will be legally released from the debts included in the proposal.

#1100, 1177 West Hastings Street, Vancouver, BC, V6E 4T5

Richmond Consumer Proposal Office

Advantages of a Consumer Proposal

A Consumer Proposal comes with several advantages. Here are some key benefits to consider:

  • You will repay only a portion of your debt, which will be divided into manageable monthly payments.
  • Interest charges are frozen.
  • You get to keep your assets.
  • Protection from debt collectors.
  • It has less impact on your credit score compared to bankruptcy.
  • It provides a structured repayment plan with a clear end date.

Disadvantages of a Consumer Proposal

While a Consumer Proposal can be a great tool to manage your debt, it also has some disadvantages:

  • Your credit rating will be affected.
  • It’s a public record.
  • If the majority of your creditors do not accept the proposal, it will not proceed.
  • If you miss three payments, the proposal can be annulled.
  • Not all debts can be included in a Consumer Proposal.

Eligible and Ineligible Debts

Most unsecured debts can be included in a Consumer Proposal. These may include:

  • Credit card debt.
  • Unsecured loans.
  • Income tax debt.
  • Student loans (if it has been more than seven years since you were a student).

However, certain debts are not eligible for a Consumer Proposal. These include:

  • Secured debts like your mortgage or car loan.
  • Student loans (if it’s been less than seven years since you were a student).
  • Child support and alimony arrears.
  • Court fines or penalties.

How a Consumer Proposal impacts your Credit

When you file a Consumer Proposal, a note is placed on your credit report, and your credit score will drop. The note will stay on your report for three years after you complete the proposal. This can make it more difficult to obtain credit during this period.


A Consumer Proposal in Richmond, BC can be a powerful tool if you’re struggling with debt. It provides a legal and structured way to pay off your creditors and get a fresh start.

Remember, while a Consumer Proposal can offer significant benefits, it’s not the right solution for everyone. It’s crucial to consult with a Licensed Insolvency Trustee to thoroughly understand the process and implications before proceeding.

If you need help with your debts and are considering a Consumer Proposal, feel free to reach out to us for a free consultation. We’re here to help you navigate your financial journey and find the best solution for your situation.

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

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

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 Richmond, 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.

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We can help you determine whether a consumer proposal is right for you

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

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