Consumer Proposal Burlington

Understanding Consumer Proposals in Burlington: A Comprehensive Guide

Experiencing financial difficulty can often feel like a never-ending tunnel of stress and uncertainty. One viable solution for debt-stricken individuals is filing a Consumer Proposal. This legal process, governed by the Bankruptcy and Insolvency Act, allows you to repay a portion of your debt, providing a lifeline to many struggling with financial issues in Burlington, Ontario.

What is a Consumer Proposal?

A Consumer Proposal is an agreement between you and your creditors to repay a portion of your debt. The amount you repay is primarily based on your income and the assets you own. It’s an effective method of debt consolidation and is a popular alternative to bankruptcy.

Filing a Consumer Proposal in Burlington

A Consumer Proposal can only be set up by a bankruptcy trustee and costs around $1,500. This includes an initial setup fee, and if accepted by your creditors, you’ll pay the balance to proceed. The trustee retains 20% of your future payments as an administration fee. For the proposal to be legally binding, the creditors who own the majority of your debt must agree to the arrangement. If approved, you’ll repay the agreed-upon amount over a maximum term of five years.

2289 Fairview Street, Suite 424, Burlington, Ontario L7R 2E4

Burlington Consumer Proposal Office

Benefits and Drawbacks of a Consumer Proposal

As with any financial decision, there are clear pros and cons of filing a Consumer Proposal.


  • Significant reduction of the amount of debt to repay.
  • Effective method of debt consolidation.
  • Pauses active collection on student loan payments.
  • Avoids bankruptcy.


  • Not a private matter; a Consumer Proposal is a permanent public record and searchable.
  • It costs more than filing for bankruptcy.
  • Creditors can reject the proposal, requiring you to offer additional funds to proceed.
  • You might have to sell your assets.
  • Student loans less than seven years old can’t be included.

The Process of Filing a Consumer Proposal

The process of filing a Consumer Proposal involves several steps:

  1. Consult with a Licensed Insolvency Trustee to review your assets, liabilities, monthly income, expenses, and other relevant factors.
  2. Explore debt relief solutions.
  3. Sign statutory documents with the trustee, which are then filed with Industry Canada.
  4. A stay of proceedings is enacted, stopping creditor collection proceedings and wage garnishments.
  5. Creditors have 45 days to vote on the proposal terms.
  6. Court approval is required within 15 days from creditor acceptance.

Impact on Your Credit

Upon commencement of a Consumer Proposal, a note is placed in the public records section of your credit report. Your creditors may also report a “7” rating on any debt included in your proposal, indicating that they are receiving your payments through a third party, which in this case is your trustee.

Avoiding Consumer Proposal Scams

Unfortunately, Consumer Proposals have become a way for some companies to take advantage of unsuspecting Canadians. Only a government-licensed bankruptcy trustee is permitted to file paperwork for a Consumer Proposal. Always speak with a non-profit Credit Counsellor about your financial situation first, and never hand over money to anyone for Consumer Proposal services except a government-licensed bankruptcy trustee.


Between financial difficulty and bankruptcy, there can be many options, and while a Consumer Proposal may be a good option for some, it isn’t the best option for everyone. To find out what options you have, consider speaking with a professionally certified Credit Counsellor. Appointments with them are free, non-judgmental, and completely confidential.

Contact Us Today

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