Consumer Proposal Study

Vyacheslav Mikhed and  Barry Scholnick wrote a consumer proposal study on  PROPOSALS IN CANADA AFTER THE 2009 LEGISLATIVE AMENDMENTS TO THE BANKRUPTCY AND INSOLVENCY ACT

This consumer proposal study was published in March of 2015.   It examined the effect of the 2009 Increase in the maximum debt limit from $75,000 to $250,000 (excluding home mortgages).

The study found the following:

  1. That there was a significant increase in the number of consumer proposals filed;
  2. Most of the consumer proposals were in the $75,000 to $150,000 range;
  3. There was a lower proportion of payments accepted by the creditors (Lower cents of the dollar paid);
  4. There was a higher absolute payment accepted by the creditors.


Consumer proposals are a large and growing part of the Canadian consumer insolvency system.  The aim of this consumer proposal study was to provide a statistical analysis of consumer proposals in Canada, using detailed individual proposal filing level data provided to us by the Office of the Superintendent of Bankruptcy (OSB), Canada’s Insolvency regulator.   The data include all consumer proposals filed in Canada from 2006 to 2014.

The main focus of this consumer proposal study was to evaluate the impact of the changes to Consumer Proposals in Canada following the legislative changes to the Bankruptcy and Insolvency Act, which were made effective on September 18, 2009.   Specifically the focus was on  the impact of the change in the ceiling of net debt (total debt minus mortgage debt on principal residence) under which consumer proposals could be filed.   The net debt ceiling changed from $75,000 to $250,000 after the reforms.

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