Consumer Proposals In North Vancouver

Facing debt isn’t always a comfortable situation, but it must be done if you’re going to have a brighter future.

One option is to learn more about Consumer Proposals in North Vancouver and what they are and what they can do for you.

Educate yourself on the matter so you can decide whether or not to move forward with this solution based on your circumstances.

What are Consumer Proposals?

You may have heard the term consumer proposals as you research financial options for paying down debt but might not understand what it means exactly.

You may want to file a consumer proposal in North Vancouver if you’re looking for a way to consolidate your debts.

It is a legal process under the Bankruptcy and Insolvency Act between you and your creditors to repay part of what you owe.

Your income and what you own will be largely taken into account when trying to determine how much you’ll be required to repay.

The only person who can set up a consumer proposal is a bankruptcy trustee.

The creditors who you owe the majority of your debt to must agree to the proposal before it’s considered legally binding.

You can plan to have to pay back the agreed-upon amount over a maximum term of five years if the creditors accept the proposal.

Advantages & Disadvantages of Filing for A Consumer Proposal

There are a few advantages and disadvantages you should be aware that consumer proposals contain.

Such as the following:


  • It can significantly reduce the amount of debt you have to repay your creditors.
  • It can be an effective method of debt consolidation in North Vancouver, BC if:
    • You don’t have the ability to repay all the debt you owe.
    • You have consistent income.
    • You’ve put together a monthly budget, and you can afford to make monthly payments.
  • Could be a worthwhile option if:
    • You aren’t able to get approved for a debt consolidation loan.
    • If you have debts (like a large government debt) which can’t be paid through a debt management program.
  • Will stop active collection activity on student loan payments.
  • It is one of the last methods of avoiding personal bankruptcy.


  • It’s not a private matter. A Consumer Proposal is filed as a permanent public record and is included on a searchable database.
  • It costs more than filing for bankruptcy.
  • The Court must approve it.
  • Creditors can choose to reject the proposal. If they do, you may need to offer them additional funds to convince them to proceed.
  • You might need to sell some of your assets (such as a vehicle, your home, or investments).

Consumer Proposals & Your Credit

There will be a special notation on your credit report once you enter into a consumer proposal agreement.

You’ll be able to find it under the public records section.

You and anyone who you allow to view your credit report will see this note, so it’s not a private matter.

It’s also possible that your creditors will report a “7” rating on any debt that’s included in the proposal.

A “7” rating indicates that a third party is sending the money to your creditors.

In this instance, the third party is your trustee.

It’s how the process will go because your trustee will send the monthly payments to the creditors after all applicable fees are paid out.

You should also be aware that if you’re paying off secured debts such as a car loan, these are tracked separately and not part of the proposal details.

It’ll be helpful for you to create and follow a budget so that you can keep on top of all your payments to the various parties.

Keeping up with paying off secured debts will allow you to rebuild your credit more quickly over time.

Therefore, it’s in your best interest to commit to making the payments in a timely fashion.

How to Proceed

It’s wise to know that bankruptcy isn’t your only option when you’re facing financial difficulty.

Contact us at Bankruptcy Canada, and we’ll be happy to walk you through the next steps of filing a consumer proposal and answer any questions you have.

If you need help to create a plan to become debt free our Licensed Insolvency Trustee in North Vancouver is ready to assist you!

Debt settlements are possible for individuals and small businesses alike.