Consumer Proposal Quebec

What Is a Consumer Proposal in Quebec?

The consumer proposal is a legal agreement made on your behalf through a consumer proposal administrator to your creditors to settle your debts.

You will have a set schedule to pay off your debt, and you will often repay less than you originally owned.

A consumer proposal is a legally binding agreement between you and your creditors.

A consumer proposal helps you clear what you owe and gives you an affordable way to get out of debt.

You will not pay any interest charges on the debt that your creditors have not forgiven.

In order to qualify for a consumer proposal you must:

• Have debts of less than $250,000 ($500,000 for married couples making a joint consumer proposal),
• Be unable to make the payments as they become due on your debts (or you have already stopped making your minimum payments),
• Have insufficient assets to cover your debts if your assets were sold,
• Work with a Licensed Insolvency Trustee (LIT), as only a LIT is licensed by the Canadian government to file a consumer proposal on your behalf.

When you meet with a LIT (also known as a consumer proposal administrator), they will help you analyze your financial situation to see if a consumer proposal is a good fit for you.

If you and your Trustee determines a consumer proposal will work for you, your Trustee, acting as your consumer proposal administrator, will help you develop a debt repayment plan to propose to your creditors.

Once your creditors accept your proposal (over 99% of our consumer proposals are accepted), your agreement becomes a legally binding agreement between you and your creditors.

Quebec Consumer Proposal Pros and Cons

Pros

• The fees to file a consumer proposal are often more affordable than personal bankruptcy,
• Debt collectors will stop harassing you, since wage garnishments, collection calls and other legal actions will cease once your proposal is agreed upon,
• Your assets will be protected when you file a consumer proposal, including assets that would be lost if you file for bankruptcy,
• A consumer proposal allows you to consolidate your debts into 1 easy to manage monthly payment that you make to your consumer proposal administrator,
• While you can't include your mortgage debt in a consumer proposal, it often becomes more easy to manage your mortgage payments because your other debt payments are reduced,
• Your consumer proposal administrator will handle all communications with your unsecured creditors.

Cons

• While it won't impact your credit as much as a bankruptcy, a consumer proposal still has a negative impact on your credit (although debtors making a proposal to get out of debt often already have poor credit),
• You will pay more to your creditors than if you go bankrupt,
• In very rare cases, your creditors can vote to reject your proposal.

Find Out More About Consumer Proposals Today

While a consumer proposal is a very attractive bankruptcy alternative, it is not right for everyone.

You must speak with a licensed debt help professional to learn about your other options and to see if a consumer proposal is right for you.

Fortunately we offer risk free, no-pressure and free consultation meetings with our experienced debt help professionals.

Please call us today to learn more about consumer proposals and how we can help you.

You can break free and get out of debt with our assistance.

In Quebec, your creditors have 45 days to vote on accepting or rejecting your consumer proposal.

The amount of debt you have will impact how much you should offer your creditors in your consumer proposal plan.

A record of your consumer proposal will remain on your credit report for 3 years after its successful completion.

If you are dealing with debt and are struggling to manage your finances we know it can be difficult to know what to do next.

There are many solutions available to you and we understand it can be difficult to know how to proceed.

At Bankruptcy Canada we have friendly and experienced debt experts in your area who can meet with you to help you understand the right solution to your unique money problems.

With our caring assistance we can help you explore all of your debt options and help you choose the correct path towards getting out of debt.

To learn about the debt relief options provided by the Licensed Insolvency Trustees of BankruptcyCanada please request a confidential debt consultation through our online form or by calling 877-879-4770 today.