The Flexibility of a Consumer Proposal Enables a Debtor to Focus on Recovering Her Health

A Consumer Proposal Offers Flexible Terms and Other Benefits

In our everyday lives, we encounter numerous challenges. Some are financial, while others are health-related. When these two predicaments intersect, the situation often becomes unbearable. But guess what? There’s a silver lining. An innovative financial tool, known as a Consumer Proposal, can provide much-needed relief. This post reveals how the flexibility of a consumer proposal allows a debtor, who is also a patient, to focus on regaining health.

Case Study: A Debtor’s Plight

Recently, I had an encounter with a client plagued by a severe health condition, which was wreaking havoc in her personal and financial life. Despite owning significant assets, including a house, she didn’t have a will.

The client shared ownership of a house, mortgage-free and worth around $1.4 million, with her father and sister. Each held a 33% interest in the property. At the time we met, she was unemployed and fighting cancer. Despite her financial troubles, she didn’t want her situation to affect her ownership in the house or her family members.

Her sister extended a helping hand, but this was only a temporary solution. It bought her some time to focus on her health, but it didn’t fully relieve her of her financial obligations. She needed a more sustainable solution.

Understanding Consumer Proposal

A Consumer Proposal is a legal agreement set up by a licensed insolvency trustee. The debtor agrees to pay a percentage of the debt owed, and the creditors agree to forgive the remaining balance.

The Client’s Solution: Consumer Proposal

After a thorough discussion of her options, we concluded that the best solution was a Consumer Proposal. It was an affordable and viable solution that would shield her from her creditors. This protection extended to the house, preventing creditors from taking legal action to force a sale of the house to recover their money.

Crafting a Customized Consumer Proposal

I managed to set up a consumer proposal that allowed her to make lower monthly payments for the first year, a critical period during her recovery. After the first year, her payments would increase for the remaining four years of her consumer proposal. This arrangement provided her with the peace of mind to concentrate on her health recovery without worrying about her debts.

The Outcome

This case serves as an excellent example of how a Consumer Proposal can be structured flexibly to benefit both the debtor and the creditors. Now, she doesn’t have to worry about her debts and can prioritize her health recovery.


A Consumer Proposal offers a lifeline to those struggling with unmanageable debt. It’s a flexible tool that can be tailored to fit your financial situation and provide protection from creditors. If you find yourself in a similar predicament, don’t hesitate to explore this option.

Remember, health is wealth, and the flexibility of a Consumer Proposal can enable you to focus on recovering your health, rather than stressing over finances.

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