Consumer Proposals 98% Acceptance Rate

Consumer Proposals Have a 98% Acceptance Rate:

We made the statement in this article that almost all consumer proposals are accepted because the creditors know they will get more money with the consumer proposal than if the debtor goes bankrupt.

In many cases the creditors will get nothing in a bankruptcy.

Trustees report that consumer proposals have an acceptance rate of 98%.

One of the main reasons why the acceptance rate is so high is that consumer proposals are fair and satisfactory to all parties:

  • Creditors will receive more money than if the debtor files bankruptcy;
  • The debtor has the satisfaction of knowing he has avoided bankruptcy;
  • Professional designations, that might be put in jeopardy in a bankruptcy, are protected;
  • A position as a director of a corporation, that would be lost in a bankruptcy is retained;
  • Potential future windfalls, such as inheritances and lottery winnings, are not given up;
  • There is no monthly reporting to the trustee in a consumer proposal, as there is with a bankruptcy;
  • Assets, that might be lost in a bankruptcy, are retained by the debtor.

The expertise of Trustees is a critical factor in ensuring the 98% acceptance rate.

  • Licensed Insolvency Trustees are the most experienced and highly trained debt professionals in Canada.
  • Listening to your needs is a top priority! Licensed Insolvency Trustees are professionals experienced in debt solutions. Their input on your consumer proposal will maximize its chance of being accepted by your creditors without compromising your basic needs;
  • LITs take into account a number of factors when drawing up a consumer proposal:
    • The settlement amount offered will be based on your budget, which will include an amount to cover unforeseen expenses and emergencies;
    • The high acceptance rate of 98% demonstrates our LITs’ skills in negotiating with creditors.It also demonstrates their ability to appropriately counsel debtors.These skills are key factors in the debt resolution process.


The impartiality of Licensed Insolvency Trustees is another critical factor in achieving a 98% acceptance rate.

Trustees are officers of the court and do not represent the creditors or the debtor but have obligations to both.

This impartiality goes a long way towards instilling trust in trustees and the consumer proposal process.

LITs are known for being impartial professionals who seek the best solution for all parties involved.

This is especially true for consumer proposals, where the role of our Licensed Insolvency Trustees is to find the middle ground that balances the needs of creditors and the debtor.

A successful consumer proposal must be agreed upon by all parties.

Your budget must be respected, but creditors must also receive their fair share.

The sums paid to creditors in a consumer proposal must also be better than what they would receive in a bankruptcy.

If you have any questions about this or any other matters there are three ways for you to get answers:

Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation

Call 877-879-4770


Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal

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