Consumer Proposal Brantford

The Comprehensive Guide to Consumer Proposals in Brantford

The city of Brantford, Ontario, has seen a significant rise in the use of Consumer Proposals as a method to deal with debt. This comprehensive guide aims to shed light on the intricacies of Consumer Proposals in Brantford.

What is a Consumer Proposal?

A Consumer Proposal is a legal procedure under the Bankruptcy and Insolvency Act that allows debtors to settle their debts with their creditors. It is a process that provides a structured platform for negotiation, where the debtor proposes a plan to pay back a portion of the debt they owe.

The Consumer Proposal process is facilitated by a licensed bankruptcy trustee. The cost of filing a Consumer Proposal typically revolves around $1500, with an initial setup fee, followed by the remaining balance once the proposal is accepted by the majority of your creditors.

The Legality of a Consumer Proposal

For a Consumer Proposal to be legally binding, it must be agreed upon by the creditors who hold the majority of your debt. After the approval, the debtor is required to repay the agreed amount over a maximum of five years. This process also includes an administration fee for the trustee, which is about 20% of your future payments.

217 Terrace Hill St, Brantford, ON N3R 1G8

Brantford Consumer Proposal Office

Advantages and Disadvantages of a Consumer Proposal in Brantford


  1. Debt Reduction: A Consumer Proposal can significantly decrease the amount you owe to your creditors.
  2. Debt Consolidation: It serves as an effective tool for debt consolidation if you have a steady income and can afford monthly payments.
  3. Avoiding Bankruptcy: It is considered one of the last resorts to evade bankruptcy.


  1. Public Record: A Consumer Proposal is a public record and is included in a searchable database.
  2. Court Approval: It must be approved by the court, and creditors can reject the Consumer Proposal.
  3. Potential Asset Sale: Some assets, such as your home, vehicles, or investments, may need to be sold.

Life After Debt

“When debts became a problem, I felt very overwhelmed – like I could not see the end of the tunnel. Picking up the phone felt like lifting a 10-pound rock, but they were very cheerful on the other end of the line. I came in, discussed my situation in privacy, and instantly got relief knowing I was in good hands.” – Anonymous Brantford Resident

Beware of Debt Scams

Unfortunately, Consumer Proposals have become a means for some companies to exploit vulnerable Canadians. These companies claim to offer Consumer Proposals as a solution to get out of debt but end up charging exorbitant fees only to refer them to a bankruptcy trustee who then charges his or her own fees.

How to Avoid Debt Scams

  1. Non-profit Credit Counsellor: Consult with a non-profit Credit Counsellor first. They can provide a holistic view of your financial situation and guide you through your options.
  2. Licensed Bankruptcy Trustee: Only pay for Consumer Proposal services to a licensed bankruptcy trustee. They are the only ones legally allowed to provide these services and receive payment for them.
  3. Compensation Clarity: Understand how the person advising you is compensated. Ensure that the solution they recommend is in your best interest, not theirs.

Impact on Your Credit Score

Your credit report will reflect a note indicating that you have filed a Consumer Proposal. Additionally, your creditors may report a “7” rating on the debts included in the proposal, which signifies that they are receiving payments through a third party, i.e., the trustee.

Alternatives to Consumer Proposal in Brantford

While a Consumer Proposal might be a good option for some, it’s not the best choice for everyone. Other options include financial counselling, debt consolidation, debt management programs, and bankruptcy.

Final Thoughts

The journey to financial recovery can be tough, but it’s not impossible. With the right tools and guidance, you can navigate through your debts and regain financial stability.

Remember, when considering a Consumer Proposal in Brantford, do your research, understand your options, and always consult a professional.

Contact Us Today

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