Consumer Proposal Victoria

An In-depth Look into Consumer Proposals in Victoria, BC

In the bustling city of Victoria, British Columbia, a significant number of residents struggle with debt. In such circumstances, many individuals turn to a legal debt repayment option known as a Consumer Proposal. This article aims to provide a comprehensive guide to understanding and navigating a Consumer Proposal in Victoria, BC.

What is a Consumer Proposal?

A Consumer Proposal is a legal agreement between a debtor and their creditors, governed by the Bankruptcy and Insolvency Act. It allows individuals to repay a portion of their total debt based on their income and assets. The proposal must be set up by a licensed bankruptcy trustee, with costs typically around $1,500. The proposal’s acceptance is dependent on the agreement of creditors who own the majority of the debt.

Consumer Proposal Administration

The trustee administering the Consumer Proposal keeps 20% of future payments as an administration fee. Upon acceptance of the Proposal, the debtor is required to repay the agreed amount over a maximum term of five years.

301 – 1321 Blanshard Street, Victoria, BC V8W 0B6

Victoria Consumer Proposal Office

Advantages of a Consumer Proposal

A Consumer Proposal in Victoria, BC offers various advantages, including:

  • Debt Reduction: It can significantly reduce the amount of debt you need to repay your creditors.

  • Debt Consolidation: It can consolidate your debts effectively, especially if you have a stable income and can make monthly payments.

  • Pause on Student Loan Payments: It can pause active collections on student loan payments.

  • Avoidance of Bankruptcy: It is one of the last ways to avoid filing for bankruptcy.

Disadvantages of a Consumer Proposal

While a Consumer Proposal may seem like an ideal solution, it does have certain disadvantages:

  • Public Record: It is not a private matter, as it is filed as a permanent public record and is included in a searchable database.

  • Cost: It costs more than filing for bankruptcy.

  • Court Approval: The court must approve it.

  • Creditors’ Agreement: Creditors can choose to reject the proposal, and you might need to offer additional funds to convince them to proceed.

Debt Relief Rip-offs

Unfortunately, Consumer Proposals have become a way for some debt relief companies to exploit vulnerable consumers. Only a licensed bankruptcy trustee is legally allowed to handle Consumer Proposals in Canada. So, watch out for companies charging large fees and then referring you to a trustee.

How to Avoid Rip-offs

Follow the steps below to avoid being ripped off:

  • Seek Non-profit Counselling: Speak with a non-profit Credit Counsellor about your financial situation. They can help you explore all your debt options.

  • Pay Only a Licensed Trustee: Never pay money to anyone for Consumer Proposal services except a licensed bankruptcy trustee.

  • Check for Commission: Ask how the person helping you is compensated. Many work on commission, so their recommended “solution” might not be in your best interest.

Impact of a Consumer Proposal on Your Credit

Once you enter into a Consumer Proposal, a special notation is placed on your credit report in the public records section. Anyone who you allow to look at your credit report can see this section. Moreover, creditors may report a “7” rating on any debt included in the proposal, which signifies that creditors are receiving your payments through a third party.

Assistance for Filing a Consumer Proposal

When facing financial difficulties, you may think that bankruptcy is your only option. However, many options can help deal with debt in Canada, and a Consumer Proposal can be a good option for some. To find out what options might be right for you, it’s recommended to consult with a professional Debt Counsellor.


A Consumer Proposal in Victoria, BC can be a viable option for those struggling with debt. By understanding the process, advantages, and drawbacks, individuals can make informed decisions about their financial future. Always seek professional advice before making such decisions to ensure your best interests are protected.

Contact Us Today

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

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

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 Victoria, 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 Victoria.

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