Lower Your Debt With a Consumer Proposal

You Can Pay Back Less Than You Owe

Lower Your Debt With a Consumer ProposalIf you’re drowning in debt, it’s time to stop treading water and take decisive action. One viable solution that you may not be aware of is the Consumer Proposal. This legal process, legislated by the government, can help you eliminate a significant portion of your debt, stop accruing interest, and get back on track financially.

Understanding a Consumer Proposal

A Consumer Proposal is a well-kept secret in the world of debt solutions. It’s a settlement offer that you negotiate with your creditors, which, if accepted, could reduce your debt by up to 80%.

Additional Information: It’s important to note that with a Consumer Proposal, you don’t have to pay back your debts in full.

Eligibility for a Consumer Proposal

To file a Consumer Proposal, you must meet several criteria:

  1. Your total debt must be less than $250,000.
  2. You must have been a resident of Canada within the past year.
  3. You must have assets (like a Registered Retirement Savings Plan) in a Canadian financial institution.

If you feel capable of repaying a portion of your debt, a Consumer Proposal could be an ideal solution for you.

Process of Filing a Consumer Proposal

Here’s a step-by-step breakdown of how to file a Consumer Proposal:

  1. Consult with a Debt Solutions Professional: Firms like Farber Debt Solutions can provide a free consultation to discuss your financial situation and create a customized settlement offer.
  2. Create and Submit Your Proposal: Your offer to creditors could be as low as 30% of your total debt. For example, if your debt is $40,000, your proposal might only be $12,000, which could be paid in monthly installments of just $200.
  3. Wait for Your Creditors’ Response: After submitting your proposal, your creditors have 45 days to vote on whether they accept it or provide a counteroffer.
  4. Start Paying Down Your Debt: If your proposal is accepted (which happens 98% of the time), you can begin making payments. All further interest stops the moment your proposal is filed.

Benefits of a Consumer Proposal

A Consumer Proposal isn’t just a way to lower your debt—it’s a pathway to financial health. Here are some key benefits:

  1. Debt Reduction: You can potentially eliminate up to 80% of your debt.
  2. No Further Interest: Interest stops accruing as soon as your proposal is filed.
  3. Flexible Repayment Plan: You have up to five years to pay off your proposal, but you can do it faster if you’re able.
  4. No Penalties for Early Repayment: If you decide to pay off your proposal early, you won’t incur any extra fees.


If your debt is spiraling out of control, it’s time to consider a Consumer Proposal. It’s a legal, practical, and effective way to Lower Your Debt With a Consumer Proposal. Don’t let your debt dictate your life—take control and start your journey to financial health today.

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