Consumer Proposal Vernon

Understanding Consumer Proposals in Vernon

Introduction to Consumer Proposals

A Consumer Proposal is an effective legal solution for individuals facing financial constraints. Governed by the Bankruptcy and Insolvency Act, a consumer proposal is a negotiation process between debtors and creditors, enabling the debtor to pay back a portion of the total owed debt. This portion is determined on the basis of the debtor’s income and assets.

The Role of a Licensed Insolvency Trustee

In Vernon, a bankruptcy trustee, also known as a Licensed Insolvency Trustee (LIT), is the only professional legally authorized to setup a consumer proposal. The cost of this service is approximately $1,500, which includes an initial setup fee. Once the proposal is accepted by creditors, the remaining balance is paid. Additionally, the trustee retains 20% of the debtor’s future payments as administration fees.

3009 28th St., Vernon, BC, V1T 4Z7

Vernon Consumer Proposal Office

The Approval Process

The acceptance of a consumer proposal is at the discretion of the creditors who hold the majority of the debtor’s debt. Once they agree to the arrangement, the debtor is obligated to repay the agreed amount within a maximum term of 5 years.

Pros and Cons of Filing a Consumer Proposal


  1. Significant reduction of the total debt to be paid
  2. An effective method of debt consolidation
  3. Pauses active collection on student loan payments
  4. A good alternative for those who don’t qualify for a debt consolidation loan or have unmanageable government debt
  5. One of the last steps to avoid bankruptcy


  1. Consumer proposals are public records and included in a searchable database
  2. Costs higher than filing for bankruptcy
  3. Needs court approval
  4. Creditors can reject the proposal, potentially requiring additional funds to proceed
  5. Potential need to sell assets
  6. Risk of filing for bankruptcy if more than 2 payments are missed
  7. Secured debts and recent student loans cannot be included
  8. Risk to certain professional licenses and future employment opportunities

The Danger of Debt Relief Companies

Unfortunately, many debt relief companies exploit unsuspecting consumers by offering consumer proposal services, despite only licensed bankruptcy trustees being authorized to do so in Canada. These companies charge exorbitant fees only to refer the client to a bankruptcy trustee who then charges additional legitimate fees.

Avoiding Scams

To avoid falling victim to such scams, follow these steps:

  1. Consult a non-profit Credit Counsellor before making any decisions. They can review your financial situation and provide advice on your best options.
  2. Never pay for consumer proposal services to anyone other than a licensed bankruptcy trustee.
  3. Inquire about how the person assisting you is compensated. Some individuals advising you on your debts may work on commission, hence their suggestions may not be in your best interest.

Impact on Credit Score

Upon filing a consumer proposal, your credit report will reflect that you have done so. Furthermore, creditors may report a “7” rating on the debts included in the proposal, signifying that they are receiving payments through a third party, i.e., the trustee.

Seeking Professional Guidance

Navigating between financial difficulties and bankruptcy can be challenging. A consumer proposal might be an ideal solution for some, but not for everyone. To explore your options, consult a professionally certified Credit Counsellor. These appointments are free, non-judgmental, and completely confidential.


Life beyond debt is possible for everyone. The key is to seek help and explore your options. Whether it’s a consumer proposal, a debt management program, or another solution, professional guidance can help you regain financial stability and peace of mind.

Remember, it’s never too late to take control of your financial health. If you’re considering filing a consumer proposal in Vernon, seek professional advice and make an informed decision.

Contact Us Today

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

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

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 Vernon, 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 Vernon.

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