Who can file a consumer proposal?
The OSB describes this option for individuals whose total debts do not exceed $250,000, excluding debts secured by their principal residence. Meeting that ceiling alone is not an eligibility decision: a trustee must assess the legal and financial requirements. If your debts are above that limit, ask about other formal options rather than assuming there is no route forward.
Do I need a consumer proposal trustee?
A Licensed Insolvency Trustee administers the process. Before an appointment, ask who will conduct the assessment and which trustee would administer any filing. Keep the distinction between an introduction service and the person responsible for your file clear. Our enquiry is a starting point, not the formal insolvency assessment or filing.
What happens to a co-signer or joint borrower?
Your proposal does not generally release someone else who is also liable for the debt. Section 66.28 preserves the liability of other people who would not be released by your discharge in bankruptcy. Bring the account agreement and identify each borrower or guarantor. Ask the trustee what the creditor may still seek from them; do not promise a co-signer that your filing will clear their obligation.
Are my mortgage and car payments included?
Do not treat secured payments as ordinary unsecured balances. The treatment depends on the security, claim and proposal terms. Ask which payments must continue, what happens if you are already behind, and what retaining the asset would require. A proposal is not a blanket promise that you can keep a home or vehicle without maintaining the relevant obligations.
Does it deal with student loans, support or fines?
Some obligations have special treatment. Section 178 lists debts that are not normally released in bankruptcy, including support obligations and certain student loans. Section 66.28 sets specific conditions for compromising those debts through a consumer proposal. Give the trustee the type and history of the debt rather than relying on a general “debt forgiveness” claim.
Can I get a loan during a consumer proposal?
A proposal is not a new-loan approval. Before applying, ask how another payment would fit alongside the obligations you already have and what information the lender needs. Compare the full cost of an offer rather than a promise to rebuild credit quickly. If you are borrowing to cover a proposal payment, tell your trustee about that shortfall first.
What if I cannot make the next payment?
Contact your existing trustee promptly. Payment defaults can lead to deemed annulment under section 66.31; there are specific rules for amendments and possible revival. Do not assume you can pause payments yourself or that submitting a new enquiry changes the agreement. Give your trustee the amount and date of the shortfall so they can explain the available steps.
Prepare for a conversation
- List which debts are joint or guaranteed by somebody else.
- Separate secured balances from unsecured accounts.
- Flag student loans, support, fines and any disputed claims.
- Ask who administers the file and how to contact them about payment problems.
You do not need account numbers, a SIN, banking credentials or uploaded documents to start our enquiry.
Is there a standard consumer proposal formula?
There is no reliable one-percentage shortcut for your payment. A trustee needs to assess your circumstances and the proposed terms must go through the creditor process. Ask for the calculation and assumptions in writing rather than treating a website estimate as an offer.