Consumer Proposals in Moose Jaw, Saskatchewan: Unraveling Your Debt Solutions

In the face of overwhelming debt, finding a way out can seem daunting. But don’t despair! If you’re considering filing a Consumer Proposal in Moose Jaw, we’re here to guide you through the process in detail.

What is a Consumer Proposal?

A Consumer Proposal is a legal procedure that allows you to repay your creditors a portion of what you owe based on your income and assets. It’s a viable alternative to bankruptcy which can provide debt relief without losing all your assets.

Advantage of Filing a Consumer Proposal

Advantages of a Consumer Proposal in Moose Jaw include:

  • Substantial reduction of your debt.
  • Consolidation of your debts into a single, manageable monthly payment.
  • Potential to avoid bankruptcy.
  • Halt in active collection of student loan payments (if applicable).

Moose Jaw, Saskatchewan Consumer Proposal Office

The Consumer Proposal Process

The Consumer Proposal process is facilitated by a Licensed Insolvency Trustee (LIT). The LIT will contact your creditors and negotiate a single monthly payment plan which you can comfortably afford. This agreed upon amount is then distributed amongst your creditors.

In some cases, you may end up paying back less than you originally owed. However, this process requires approval from your creditors who own the majority of your debt.

Cost of Filing a Consumer Proposal

Filing a Consumer Proposal may cost around $1,500. There’s typically an initial setup fee followed by a balance payment once your creditors accept the proposal. Also, the LIT may withhold 20% of your future payments as an administration fee.

Debt Solutions Alternative to Consumer Proposal

If a Consumer Proposal doesn’t suit your financial situation, there are other alternatives such as:

Debt Consolidation: This method merges your existing debts into a single monthly repayment to multiple creditors.

Personal Bankruptcy: This is a legal process that provides a clean financial slate to individuals facing severe financial difficulties.

Informal Debt Settlements: These are negotiated agreements with your creditors to pay back a portion of your debt.

Consumer Proposal and Your Credit Rating

When you make payments under a Consumer Proposal, it gets noted on your credit report under the public records section. Your creditors may report a ‘7’ rating on the debts included in the proposal.

Maintaining a good payment history on a secured debt while making proposal payments can help you rebuild credit after completing the proposal.

Protecting Yourself from Debt Relief Scams

Unfortunately, some debt relief agencies exploit vulnerable consumers by charging exorbitant fees for Consumer Proposal services only to refer you to a bankruptcy trustee who charges additional fees.

Protect yourself from such scams by:

  • Consulting a non-profit Credit Counsellor before making any decisions.
  • Only paying a licensed bankruptcy trustee for Consumer Proposal services.
  • Understanding the compensation structure of the person helping with your debts.

Seeking Professional Help

Remember, it’s okay to ask for help when dealing with debt. Professional debt counseling services can provide invaluable guidance and help you explore all your options.

Consumer Debt Proposal Services in Moose Jaw

For residents of Moose Jaw, there are numerous certified Credit Counsellors available to help you navigate your financial difficulties. They provide free, non-judgmental, and confidential appointments for consultations.


Between financial difficulties and bankruptcy, there are many options available. A Consumer Proposal in Moose Jaw might be a good choice for some, but it’s not the best solution for everyone. To find the best solution for your situation, it’s crucial to seek professional advice and thoroughly understand all your options.

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