Consumer Proposal Examples

What is a Consumer Proposal? Real-life Examples to Illuminate the Process

Consumer proposals can often seem like an abstract concept. To shed some light on this financial tool, we dive into some real-life consumer proposal examples. These case studies demonstrate how a consumer proposal can provide a win-win scenario for both debtors and creditors.

An Overview of Consumer Proposals

Before we delve into our consumer proposal examples, let’s briefly recap how consumer proposals function. A consumer proposal is essentially an agreement between you and your creditors. You commit to paying a part of what you owe, and they consent to write off the residual debt.

Payment terms can be spread out over a maximum of five years or 60 months. It’s also viable to offer a full payout upfront or any combination of fixed monthly payments and lump sum payments.

The payments you’ll need to make depend on a variety of factors such as:


  • The amount you owe and to whom.
  • Your household income.
  • The assets you own.
  • Your budget.


Now that we’ve refreshed our understanding of consumer proposals let’s look at some real-world examples.

Six Examples of Consumer Proposals in Action

Example 1: Tackling Surplus Income and Student Debt

Imagine a single woman named Joy. She’s been grappling with student loan debt for over a decade, along with some credit card debt that accumulated before she found full-time employment in her field. With an income of around $3,400 a month, Joy would need to pay $575 a month for 21 months if she filed for bankruptcy. A consumer proposal allowed her to pay $260 a month for 60 months instead.

Proposal payments: $260 a month for 60 months.

Outcome: Joy paid $15,600 on debts totaling $37,600, saving $22,000, a reduction of 59%.

Example 2: Regaining Financial Stability for Rent

Robert, a single construction worker, faced escalating living costs. With $50,000 in credit card debt and a $28,000 truck loan, he was struggling to make ends meet. A consumer proposal allowed him to reduce his monthly debt repayment to $275, making his rent affordable again.

Proposal payments: $275 a month for 60 months.

Outcome: He repaid $16,500 on $50,000 in debts, saving $33,500, a reduction of 67%.

Example 3: Managing CERB and Pandemic Debt

Mark and Terri were financially stable until the pandemic. With Mark out of work for a few months, they relied on credit cards and government assistance. Their debts reached $35,000, and Mark was concerned about a $2,400 tax bill. A consumer proposal allowed Mark to significantly reduce his debts.

Proposal payments: $175 a month for 60 months.

Outcome: Mark paid $10,500 on debts totaling $37,400 – a reduction of 72%.

Example 4: Leveraging Home Equity

Chris and Sarah found themselves in debt after unexpected house repairs and a period of unemployment. A consumer proposal allowed Chris to settle his debts while keeping their home.

Proposal payments: $550 per month for 60 months.

Outcome: Chris paid $33,000 on debts totaling $65,000 (a reduction of 49%) and they were able to keep their home.

Example 5: Handling Tax Debts

Shad, a self-employed contract worker, found his income reduced during the pandemic. With $35,000 in HST, a $10,000 CEBA loan, and $22,000 in credit card debt, he needed a solution. A consumer proposal allowed him to manage his payments effectively.

Proposal payments: $450 a month for 60 months.

Outcome: Shad settled $67,000 in debts for $27,000, a savings of $40,000 or 60%.

Example 6: Navigating Divorce and Debt

Following maternity leave, layoffs, and a divorce, Patty and Al found themselves in debt. Both needed a solution. A consumer proposal allowed Patty to manage her debts effectively.

Proposal payments: $225 a month for 60 months.

Outcome: Patty paid $13,500, saving $26,500 on her debts – a savings of 66%.

Common Scenarios

These consumer proposal examples reflect some of the most common situations we encounter:


  • 86% of clients grapple with credit card debt;
  • 79% have a loan with a bank or credit union;
  • 38% owe money to payday lenders;
  • 28% have a high-interest installment loan;
  • 22% have outstanding student loans;
  • 40% owe money to the Canada Revenue Agency.


If you need assistance with debt, consider a consumer proposal. It’s a tool designed to provide a lifeline to those struggling with financial burdens. With our examples above, we hope to illuminate the process and its potential benefits.

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