I can provide general information about consumer proposals.
A consumer proposal is a formal debt settlement option available in Canada. It is designed for individuals who are struggling with debt and cannot repay their creditors in full. Instead of declaring bankruptcy, a consumer proposal allows you to make a legally binding offer to your creditors to settle your debts for a reduced amount or extend the repayment period. This process is managed through a Licensed Insolvency Trustee (LIT).
Many Canadians who find themselves overwhelmed by debt choose to file a consumer proposal as it offers several benefits, such as stopping collection calls, wage garnishments, and legal actions taken by creditors. It also allows individuals to keep their assets (e.g., house and car) while offering a structured repayment plan.
If you are considering a consumer proposal, it is essential to seek advice from a licensed professional, such as a Licensed Insolvency Trustee, who can assess your financial situation and provide personalized guidance based on your circumstances. Keep in mind that a consumer proposal is a serious financial decision with long-term implications, so it's crucial to understand the process thoroughly before proceeding.