Am I eligible for a consumer proposal? Do my creditors have to accept a consumer proposal? LCTaylor provides answers to the most frequently asked questions about consumer proposals in Canada.

1. Filing a Consumer Proposal
in Canada

2. What is a Consumer Proposal?
It’s a proposal made by debtors, facilitated
by bankruptcy trustees, to modify their
payments to creditors. Such a proposal
must be completed within five years.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

3. Most Frequently Asked
Questions About Consumer
Proposals in Canada
LCTaylor: 1.800.463.8371 lct@lctaylor.net

4. 1. What is the first step for filing a consumer proposal?
Meeting with a licensed bankruptcy trustee
is the first step.
Your trustee will conduct a complete
review of your finances to use as the basis
for submitting a proposal to your creditors.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

5. Am I eligible for a consumer proposal?
In order to file for a consumer proposal you
must meet the following criteria:
-Be insolvent
-Have total debt less than $250,000 (excluding
your home mortgage)
-Have a steady source of income
LCTaylor: 1.800.463.8371 lct@lctaylor.net

6. Do my creditors have to accept my proposal?
Creditors do not have to accept your
proposal but usually will if they stand to
receive more than if you file for bankruptcy.
If a majority of your creditors vote to accept
the proposal, all unsecured creditors in the
proposal become bound by it.
If a proposal is rejected, you can meet with
your creditors, determine why it was
rejected and resubmit it.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

7. What are the terms of a consumer proposal?
• The terms of a proposal are based
on your personal finances and your
ability to pay.
• You will need to make monthly
payments as outlined in the
proposal.
• Attendance at two financial
counselling sessions is required to
complete your proposal.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

8. When will my consumer proposal be
complete?
A consumer proposal needs to be
completed over a pre-determined
amount of time of no more than five
years.
If you meet the criteria as outlined in
your proposal terms, you will complete
your agreement.
Note: Section 178 debts will survive a proposal.
LCTaylor: 1.800.463.8371 lct@lctaylor.net

9. Why should I file a consumer
proposal?
• Consumer Proposals provide legal
protection from your creditors
• You can retain your assets
• You can pay back a reduced
amount of your overall debt
LCTaylor: 1.800.463.8371 lct@lctaylor.net

10. For more information about filing a consumer
proposal in Manitoba or Ontario
visit LCTaylor.com
Trustees are available to answer your questions at our
Winnipeg and Kenora locations.
LCTaylor: 1.800.463.8371 lct@lctaylor.net