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A popular bankruptcy alternative—a consumer proposal is a legal repayment agreement negotiated with creditors to settle your unsecured debt (credit cards, income tax debt, payday loans, etc.). Your Licensed Insolvency Trustee (LIT) will work with you to offer creditors a percentage of what’s owed and/or modified repayment terms based on what you can afford.
The amount of debt you repay could be reduced by up to 80%.
Once filed, interest charges, legal actions, wage garnishments, and collection activities stop.
You'll likely keep all your assets, including your car, house, and RRSPs.
As a federally regulated debt solution, you must meet the following requirements:
You must reside in Canada or own assets in Canada.
You must be insolvent—which means that you can't meet your financial obligations as they come due—or your debts exceed the value of your assets.
You must have unsecured debt.
Every person's debt situation is different. Our debt repayment calculator can help you understand your debt management options and estimated monthly payments.
In Canada, only a Licensed Insolvency Trustee can file a consumer proposal. On your behalf, they will complete the following steps.
Your proposal is approved when the majority of your creditors agree to its terms. While consumer proposals generally have a high acceptance rate, everyone’s debt situation is unique, so your journey could differ slightly from these steps.
During your no-obligation consultation, we’ll assess your financial situation and recommend the best option for settling your debt. If a consumer proposal is right for you, we’ll review your income and expenses to estimate an affordable monthly payment. The first appointment is always free, confidential, and judgement-free.
Next, we’ll prepare the formal documents needed to submit your consumer proposal to your creditors. You’ll have the opportunity to review everything before it’s filed. At this stage, we may request additional documentation to confirm your debts, income, and creditor details.
After you’ve reviewed and signed your consumer proposal, your trustee will file it with the Office of the Superintendent of Bankruptcy (OSB). Once filed, you’ll no longer pay your creditors directly, collection calls will stop, and your creditors can’t garnish your wages or take legal action against you for your debt.
Creditors have 45 days from the filing date to vote on your proposal. For approval, the majority of your creditors must accept the terms. Typically, proposals are accepted, as you’ll repay more of what’s owed to creditors—compared to bankruptcy.
If your creditors reject the proposal, your LIT may renegotiate the terms. If it’s rejected again, we’ll help you explore other debt relief options.
Once your proposal is signed, you’ll begin making either monthly or lump-sum payments to your trustee—who will pay your creditors on your behalf. You’ll have up to five years to complete your payments, but you can pay off the balance early if you’re able. You’ll also be required to attend two financial counselling sessions and meet any other conditions outlined in your proposal.
After you’ve fulfilled the terms of your consumer proposal, you’ll receive a Certificate of Full Performance. This marks the official end of your proposal and the beginning of your financial fresh start. You can now focus on rebuilding your credit and living debt-free.
We've helped thousands of Canadians take control of their finances and live happier, debt-free lives.
I was treated with kindness and respect during a difficult situation that was hard to maneuver on my own. I couldn't have made this fresh start without them. The trustees and associates and everyone involved made the experience as seamless and painless as possible. I highly recommend this business if you are struggling financially and need some guidance. I am over the moon pleased with Grant Thornton Ltd.
— Angelique W, Vancouver, BC
I was waiting so long dreading the call, but I put my shame aside and called. The lady that picked it up was a saint. She made it so easy, and I could tell she cared about me as a person and not a number. Thanks to the Grant Thornton team. Cheers!
— Mik, Passage, NS
They were always available, even during COVID-19, and responded to me with quick and concise answers to any and all of my questions. The kindness I was shown by the staff & Trustee of the Thunder Bay office was unmeasurable. They made my decision one of the best I could have made!
— Donna M, Atikokan, ON
My debt has been such a huge weight on my shoulders over the last few years. Finally, I made the move to deal with it. I am so happy I chose Grant Thornton, and extremely satisfied and over the moon happy to have their help. They made the process so much easier. Very knowledgeable and always readily available. Thank you so much for all your help.
— Darlene S, Calgary, AB
I want to express my heartfelt thanks to Carla Arellano for all of her help. She can never fully understand what a difference she has made in my life. "Thank you" just doesn't fully express what I want to say. I made a call to a different company simply to inquire about the process and found the response to be cold, impersonal and anything but reassuring. What a difference I experienced from the first phone call to Grant Thornton.
Thank you so much for your kindness, compassion, lack of judgement and reassurance. You provided me with excellent information and clearly explained my options. I am sure that many of your clients come to you feeling overwhelmed and carrying shame and guilt over the situation they have found themselves in. While that was how I was feeling about myself, I never felt any of that judgement from you, and that was a huge relief throughout this process!
— Anonymous
Speak to one of our debt solutions professionals during a free, no-obligation consultation.
LITs are the only federally regulated debt professionals qualified to offer solutions such as bankruptcies and consumer proposals. When you choose a LIT, you can be assured that you’re dealing with someone who‘s proven they have the knowledge, experience, and skills to help you make an informed decision about your finances.
Looking for assurance, tax, and business advisory services? Visit Doane Grant Thornton LLP.
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