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Proposition de consommateur

Consumer proposal

Sometimes called a “personal proposal,” the consumer proposal lets you settle your debt without declaring personal bankruptcy.

A consumer proposal is a negotiation with your creditors to repay as much of your debt as you can. Of course, the proposal takes into account your financial situation. This agreement will help you get back on your feet financially without declaring bankruptcy. Your Licensed Insolvency Trustee will handle the negotiations for you and guide you through the process.

How does a consumer proposal work?

The first meeting

You’ll meet your counsellor in financial recovery. Together, you’ll take stock of your finances and explore your options. After signing a few documents, you’ll be on your way to financial recovery.

Filing your proposal

Your Licensed Insolvency Trustee will file all the documents required to start the consumer proposal process. From then on, they’ll handle your creditors. As soon as you get started, you’ll be on your way to peace of mind.

Notice to creditors

The Licensed Insolvency Trustee will let your creditors know that you’re filing a consumer proposal. Your creditors will now communicate directly with them. No more calls, emails or letters from your creditors! This step takes place one to five days after your first meeting.

Acceptance of the proposal or request for a meeting of creditors

Your creditors have 45 days to respond to your proposal. They can accept the proposal or ask for a meeting of creditors. At the meeting, creditors will discuss your proposal with a Licensed Insolvency Trustee. For a meeting to take place, at least 25% of your creditors must request one, otherwise your proposal will be considered accepted.

Your first consultation

To put you on track to good financial health, your counsellor will help you take stock of your financial habits. The goal of this meeting isn’t to criticize you—far from it! It’s to give you tools so you won’t have to go through the insolvency process again. This meeting will take place in the first two months of the process.

The meeting of creditors: only if necessary

If your creditors request a meeting, your trustee will negotiate an acceptable agreement. If most creditors are in favour of the new proposal, it is considered accepted. If not, there are other solutions available to you. Your counsellor will go over the situation with you.

The second consultation

At this second meeting with your counsellor, you can get other advice that will help you plan your future by better planning your budget, to help you avoid going back into debt.

The approval of the proposal

If no one requests changes within 15 days of the creditors’ acceptance, the court considers your proposal approved. Remember that you won’t have to go to court—this is just a formality.

Debt discharge

Once all of the payments set out in your proposal have been made, the Licensed Insolvency Trustee will issue a certificate releasing you from your debts. Now you can start fresh!

Meet with one of our counsellors for free

You just have to take this one step to reestablish your financial health. You’ll get out of debt and gain a better quality of life. That’s the Raymond Chabot effect.