Will My Consumer Proposal Prevent My Loved Ones From Coming to Canada? 

Sponsorship While in a Consumer Proposal

Debt doesn’t discriminate.

It can affect people from different backgrounds or countries of origin.

Hence, our Licensed Insolvency Trustees provide help to residents in Canada every day, whether they are Canadian-born or not.

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As a result, we often meet people who are reluctant to receive debt relief support because they worry that it might impact immigrating relatives.

One of the most common concerns for potential clients is whether a consumer proposal can prevent their loved one from coming to Canada.

Indeed, many immigrating families rely on one person to act as a sponsor for other family members.

How will a consumer proposal affect sponsorship?

It is a question we hear regularly, and therefore we want to address the connection between debt relief and immigration sponsorship.

How does finance affect sponsorship?

To find out what can affect your sponsorship, we refer to the written regulations of Sponsorship and Immigration Canada: Processing Application to Sponsor Members of the Family Class.

This describes the requirements to sponsor a relative.

Additionally, section 5.28 Bars to Sponsorship lists a series of reasons where a sponsorship application would be denied.

The most common reasons don’t mention your financial situation:


  • The sponsor is subject to a removal order;
  • The sponsor has been detained in a penitentiary, jail, reformatory, or prison;
  • Sponsor has been convicted of a sexual offence or an offence related to family violence;
  • Sponsor is in default of a previous sponsorship undertaking.


Debt, however, is mentioned in two places of the bars to sponsorship:


  • The sponsor is bankrupt based on the provisions specified in the Bankruptcy and Insolvency Act;
  • The sponsor owes a debt under the provisions specified in the Immigration and Refugee Protection Act.


What does this mean?

Your financial situation, as a sponsor, is a factor that will be considered.

However, the Bars to Sponsorship list debt as an obstacle to your sponsorship.

But it doesn’t mention debt restructuring, which is essentially what the consumer proposal does.

Does a consumer proposal prevent you from sponsoring your loved ones?

The short answer is no.

Filing a consumer proposal will NOT prevent your loved ones from coming to Canada.

The Consumer proposal acts as a debt settlement solution that enables an individual to repay their debts and get debt-free.

In fact, because the proposal helps you to improve their financial situation, you could be in a better position to support your family in Canada.

Filing for bankruptcy prevents you from being a sponsor

If you are bankrupt, your sponsorship application is likely to be rejected as per Section 5.28. Bars to Sponsorship.

A licensed insolvency trustee can help you find the most suitable debt relief solution that will enable you to sponsor your relatives in the immigration process.

Filing for personal bankruptcy is only one of the possible debt settlement options available.

When it comes to debt management and how they affect your sponsorship application, a trustee will help you review your choices according to the rules in Sponsorship and Immigration Canada: Processing Application to Sponsor Members of the Family Class.

Don’t let debts become a problem for your sponsorship.

Book your first free consultation with your local trustee to find out how sponsors can improve their financial situations.

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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