Understanding Consumer Proposals in Estevan, Saskatchewan: A Comprehensive Guide

Dealing with soaring debt can be a challenging situation. But, have you ever heard about a Consumer Proposal in Estevan? If not, then this comprehensive guide is going to provide a deep understanding of this legal process that can help you manage your financial obligations.

What is a Consumer Proposal?

A Consumer Proposal is a formal agreement established under the Bankruptcy and Insolvency Act. It involves making an arrangement with your creditors to pay back a portion of your debt. The percentage of the debt that you pay back is primarily dependent on your income, your assets, and the agreement with your creditors.

Who Can Set Up a Consumer Proposal in Estevan?

Consumer Proposals can only be set up by a licensed bankruptcy trustee, also known as a Licensed Insolvency Trustee (LIT). The trustee will charge a setup fee, and if your creditors accept the proposal, you will have to pay the balance to proceed. In addition, the trustee will retain 20% of your future payments as the fee for administering your Consumer Proposal.

How Does a Consumer Proposal Work?

The trustee will present the proposal to your creditors. For the proposal to become legally binding, the creditors who own the majority of your debt must agree to the proposal. If they agree, you will have to repay the agreed amount over a maximum term of five years.

Estevan, SK Consumer Proposal Office

Pros and Cons of Consumer Proposal

Just like other debt relief options, Consumer Proposals also have their own set of advantages and disadvantages.


  • Considerably reduces the amount of debt you have to pay back.
  • Can be effective for consolidating your debt.
  • Pauses active collection on student loan payments.
  • Avoids bankruptcy.
  • Suitable for those who don’t qualify for a debt consolidation loan.


  • Not a private matter. It is filed as a public record and included in a searchable database.
  • Costs more than filing for bankruptcy.
  • Creditors can reject the proposal.
  • May lead to selling some of your assets.
  • Secured debts and student loans less than seven years old can’t be included.
  • May affect future employment opportunities.

Beware of Scams

Be aware of the increasing number of for-profit companies claiming to offer Consumer Proposals as a debt relief option. These companies charge hefty fees and then refer you to a bankruptcy trustee who charges additional fees. Remember, only a licensed bankruptcy trustee is legally allowed to file a Consumer Proposal.

How to Avoid Scams

Here are some tips to avoid getting scammed:

  • Consult with a non-profit Credit Counsellor about your financial situation.
  • Never pay money to anyone for Consumer Proposal services except a licensed bankruptcy trustee.
  • Understand how the person helping you is compensated.

Impact of Consumer Proposal on Credit

Filing a Consumer Proposal has a significant impact on your credit. A special notation is placed on your credit report in the public records section. Additionally, your creditors may report a “7” rating on any debt included in the proposal, which means that your creditors are receiving your payments through a third party, i.e., your trustee.

Contact Experts for More Information

It’s always a good idea to consult with an expert to understand whether a Consumer Proposal is a suitable option for you. Contact professionally certified Credit Counsellors in Estevan to discuss your situation and explore your options.

Alternative Debt Solutions

Consumer Proposals are not the only debt solution available. Other options include debt consolidation, informal debt settlements, and more. You can choose the most suitable option depending on your financial situation.


Dealing with debt can be overwhelming, but remember, there’s life beyond debt for everyone. Whether a Consumer Proposal in Estevan is the best option for you depends on your individual circumstances. However, by understanding the process and considering your other options, you can make an informed decision on how to manage your financial obligations.

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