Offer to the Consumer​

A consumer proposal is a simple and effective solution that helps you settle your debts by negotiating a single agreement with all your creditors, with the assistance of a licensed insolvency trustee.

It allows you to avoid bankruptcy while keeping your assets, including your home and car. You repay only a portion of your debts over a period of up to five years, depending on your financial capacity, interest-free, with a single, regular payment.

As soon as you submit your proposal, seizures are suspended and calls from your creditors cease.

Once the process is complete, you’re debt-free and can start afresh from a sound financial footing.

Debt consolidation denied?

The Offer to Consumers—An Effective Alternative.

If a financial institution has denied your debt consolidation application, or if the interest rates offered by alternative lenders seem excessive to you, a consumer proposal may be a much more advantageous solution—even if it requires you to repay 100% of your debts.

In fact, an offer to consumers that repays the equivalent of 100% of your debts, spread over 60 months interest-free, with administrative fees amounting to approximately 25% of the amount owed, actually amounts to an annual interest rate of about 9% to 10%. This is often comparable to—or even lower than—the rate for a traditional debt consolidation loan from a bank, and significantly lower than the rates charged by alternative lenders.

Comparison for a $24,000 debt over 60 months

Option / Total cost over 60 months

Bank consolidation

(12%): $32,032

Alternative Lender Consolidation

(27%): $43,971

Offer to the Consumer

(100% more expensive): $30,000

With the consumer proposal, you’ll pay less overall than with a bank consolidation loan at 12%, and nearly $14,000 less than with an alternative lender at 27%. It’s therefore an option worth seriously considering before turning to high-interest credit.

What if your circumstances allow you to offer less than 100%?

In many cases, your trustee can negotiate with your creditors to reach an agreement under which you repay a smaller percentage of your total debt. For a debt of $24,000, here are some examples of possible scenarios, all spread over 60 months with no interest:

100% of debt – $30,000 – $500 per month

80% of the debt – $19,200 – $320 per month

60% of the debt – $14,400 – $240 per month

40% of the debt – $9,600 – $160 per month

20% of the debt – $4,800 – $80 per month

The lower the proposed percentage, the greater the financial relief—while remaining a legal, regulated solution that is much more affordable than borrowing from high-interest lenders. Every situation is unique: your licensed insolvency trustee will assess your ability to pay and negotiate the best possible agreement with your creditors.

Note: The percentages and examples provided are for illustrative purposes only. The exact percentage proposed in your case depends on your personal financial situation and must be approved by your creditors and, if applicable, by the court.

Emergency?

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