Understanding Consumer Proposals in North Battleford: A Comprehensive Guide

Dealing with financial hardship can be a daunting task. In particular, if you’re based in North Battleford, Saskatchewan. One option available to you might be a Consumer Proposal. Let’s delve into what it is, how it works, and the pros & cons of opting for it.

What is a Consumer Proposal?

A Consumer Proposal is a legal agreement under the Bankruptcy and Insolvency Act. It’s a negotiation between you and your creditors to repay a part of your total debt. The repayment amount depends on your financial capacity and assets.

NOTE: Only a licensed bankruptcy trustee is eligible to setup a Consumer Proposal. The average cost of setting one up is around $1,500.

For the proposal to be legally binding, creditors carrying the majority of your debt must agree. Upon agreement, you’re required to pay the agreed amount over a maximum period of 5 years.

North Battleford, SK Consumer Proposal Office

The Pros & Cons of Filing a Consumer Proposal in North Battleford

Like any financial decision, a Consumer Proposal comes with its own set of advantages and disadvantages.


  • It can significantly reduce the amount of debt you have to repay.
  • It offers an effective method of debt consolidation.
  • It can be a good option if you can’t qualify for a consolidation loan or have debts that need to remain outside of a debt management program.
  • It puts active collection of student loan payments on hold.
  • It is one of the final ways of avoiding bankruptcy.


  • It’s not a private matter and is included on a searchable public database.
  • It costs more than filing for bankruptcy.
  • Creditors can reject the proposal.
  • You might need to sell some of your assets.
  • You may need to file for bankruptcy if you miss more than 2 payments.
  • Secured debts and student loans less than 7 years old can’t be included.
  • It can put certain professional licenses at risk and may affect future employment opportunities.

Beware of Debt Relief Scams

Unfortunately, Consumer Proposals have become a way for some debt relief companies to exploit consumers. While these companies claim to offer Consumer Proposals, only a licensed bankruptcy trustee is legally allowed to do so.

TIP: Never hand over money to anyone for Consumer Proposal services except a government licensed bankruptcy trustee.

How a Consumer Proposal Impacts Your Credit

Filing a Consumer Proposal affects your credit score. It leaves a note on your credit report, and your creditors may report a “7” rating on the debts included in the proposal.

Contact Us for More Info

There are many options between financial difficulty and bankruptcy. A Consumer Proposal may be a good option for some, but it isn’t the best option for everyone. To find out what options you have, contact us in North Battleford.

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