How Much Does a Consumer Proposal Cost in BC?

Consumer Proposal Costs in BC

How Much Does a Consumer Proposal Cost in BCIn British Columbia (BC), navigating the world of debt can be a complex and challenging process. One of the key routes that individuals often explore to manage their debt is a consumer proposal. But a primary question that arises is, how much does a consumer proposal cost in BC? In this elaborate guide, we will dissect every aspect of consumer proposal costs in BC, helping you understand this debt management tool better.

Understanding Consumer Proposals

A consumer proposal is a legal agreement that allows an individual to consolidate all of their debts into a single amount, stop all future interest charges and collection activities, and repay a portion of the debt. It’s a unique tool offered exclusively by Licensed Insolvency Trustees (LITs) that enable a person to consolidate their debt legally, without resorting to bankruptcy or credit counselling programs.

Who Can File a Consumer Proposal?

A consumer proposal can be filed in BC by a person who owes between $1,000 and $250,000 (not including mortgages on their personal residence). If a person owes more than $250,000 they may still be able to file a Proposal, but some different rules may apply.

Advantages and Disadvantages of Filing a Consumer Proposal

Before we delve into the costs of filing a consumer proposal in BC, let’s understand its advantages and disadvantages.


  1. It can significantly reduce the amount of debt you have to repay your creditors.
  2. It can be an effective method of debt consolidation.
  3. It will pause active collection on student loan payments.
  4. It’s one of the last ways to avoid bankruptcy.


  1. It’s not private. A proposal becomes a permanent public record included on a searchable database.
  2. It’s more expensive than declaring bankruptcy.
  3. Creditors can reject the consumer proposal.
  4. Some assets may need to be sold.

Consumer Proposal Costs in BC: A Complete Breakdown

The cost of a consumer proposal in BC depends on several factors, including the total amount of your debt, your income, and what assets you own. The costs associated with filing a consumer proposal are federally regulated and are a percentage of the funds you pay into your proposal.

Here’s a brief breakdown of the costs and distributions associated with a consumer proposal offering payments totaling $20,000:

What? How Much? Who?
Filing fee $104.24 Office of the Superintendent of Bankruptcy
Counselling Fees $170.00 (2 sessions x $85.00) plus applicable taxes Licensed Insolvency Trustee or third-party qualified counsellor
Proposal Administration Fees $1,500 flat fee plus 20% of creditor distributions, plus applicable taxes Licensed Insolvency Trustee
Levy 5% of creditor distributions, deducted from payments to creditors Office of the Superintendent of Bankruptcy

How a Consumer Proposal Can Impact Your Credit

The process of filing a consumer proposal is intended to help you settle your debts without the long-term consequences and relinquishing of assets associated with personal bankruptcy. However, it will impact your credit score. For three years after your final payment, a note will appear on your credit report indicating that you entered into an arrangement to settle your debts.

Beware of the Big Debt Rip-Off

Consumer proposals have unfortunately become the latest way for an increasing number of debt relief companies and their salespeople to take advantage of vulnerable, unsuspecting consumers. Make sure you don’t let this happen to you! Many of these companies are now claiming to offer consumer proposals as an effective way to deal with debt. But there’s a problem. In Canada, only a licensed bankruptcy trustee is legally allowed to deal with consumer proposals.

How to Prevent Getting Ripped Off

Follow the tips outlined below to avoid getting ripped off:

  1. Talk to a non-profit Credit Counsellor about your situation first.
  2. Never pay money to anyone for consumer proposal services except a licensed bankruptcy trustee.
  3. Find out how the person helping you is compensated.


Understanding how much a consumer proposal costs in BC is crucial when exploring debt management options. It’s always advisable to do your due diligence, ask the right questions, and seek professional advice. Remember, a consumer proposal is just one of many possible solutions to manage debt. Therefore, it’s important to explore other alternatives and choose the one that best suits your personal situation.

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