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Consumer Proposal Filing in Vancouver


A Consumer Proposal is a legally binding process governed by the Bankruptcy and Insolvency Act that can only be administered by a Licensed Insolvency Trustee (“LIT”). It is available to individuals who have consumer debts of less than $250,000 (excluding mortgage secured by principal residence). The Licensed Insolvency Trustees at Crowe MacKay & Company can help you file a consumer proposal in Vancouver to consolidate your debts.

In this process, you will work together with the Administrator under the supervision of the LIT to develop a proposal to your creditors. The proposal is very flexible and can be based on your financial situation. Typically, a proposal is a percentage of what is owed to the creditors, paid over an extended period of time. The maximum term cannot exceed five years.

If you are looking for immediate protection from debt collectors, turn to Crowe Mackay & Company in Vancouver. We have a team of professional to help you. Dealing with debt is an overwhelming feeling, and we have Licensed Insolvency Trustees to assess your situation. We offer a wide range of options including ordinary proposal, corporate bankruptcy and receivership. Get in touch with us for more information.

How Does a Consumer Proposal Provide Debt Relief?

Once a proposal has been formulated, it is forwarded to all of your creditors for their consideration as well as the Office of the Superintendent of Bankruptcy (“OSB”). A meeting of creditors in order to vote on the proposal may be required if creditors holding at least 25% in value of the total claims requests a meeting within 45-days of the date the proposal is filed. The OSB can also request a meeting. If no request is made, the proposal is deemed to have been accepted by your creditors and is now binding on all of your unsecured creditors regardless of any objections received. If a meeting is requested, the creditors will vote by simple majority in dollar value.


Am I Eligible for a Consumer Proposal?

To file a consumer proposal in British Columbia, you first need to determine whether you are eligible for a consumer proposal or not. In order to be eligible to file a consumer proposal, you must meet the following criteria:

  • You must be insolvent.
  • The total of your unsecured debts must amount to less than $250,000, excluding mortgages on your principal residence.
  • You must not have any previous proposal proceedings open.

Speak with our Licensed Insolvency Trustees today to discuss your options for a consumer proposal in Vancouver.


How to File a Consumer Proposal?

Filing a consumer proposal is a process that needs to be executed very carefully. You must contact a Licensed Insolvency Trustee (LIT) in order to file your consumer proposal and carry forward the proceedings on your behalf. The process of filing the consumer proposal involves the following steps:

  • Step 1: Meet a LIT
  • Step 2: Through your LIT, negotiate a fair settlement with your creditors
  • Step 3: Seek creditor approval for your proposal
  • Step 4: Seek Court approval for your proposal

Kindly note that while the aforementioned procedure is standard and is followed in most cases, there may be some variation based on your specific circumstances.


What Happens After the Acceptance of Your Consumer Proposal?

If your proposal has been accepted, you will be responsible for complying with the terms of the proposal and attend two counselling sessions. You get to keep your assets provided that you have continued to make payments to your secured creditors who hold a charge against the same.

If your proposal is accepted by your creditors, the OSB or any interested party will have 15 days to ask the LIT to apply to the Court to have the proposal reviewed. If no request is made, the proposal is deemed to have been approved by the Court.

Once the terms of your proposal have been fulfilled, you will be issued a Certificate of Full Performance and you will be legally released from the debts included in your proposal.

What Are the Benefits of Filing a Consumer Proposal?

A consumer proposal is considered a better solution for both the debtor and the creditor compared to other debt-relief options. Filing a consumer proposal in Vancouver allows you to repay a portion of the debt you own without giving up any of your possessions.

Apart from allowing you to start anew, here are some of the reasons why you should choose consumer proposal:

  • Keep all your assets

    One of the great benefits of a consumer proposal is that your assets are protected. You get to keep all your assets while eliminating your debts, including any equity in your home, investments, your car, and tax refunds.

  • Get creditor protection

    Being a legal process under the Bankruptcy & Insolvency Act, a consumer proposal offers credit protection, preventing you from getting calls from collection agencies and wage garnishments. Once the majority of your creditors approve your proposal, it is binding on all of your creditors.

  • Lower monthly payment

    As part of the negotiation of a consumer proposal, you need to repay just a portion of your debt, often reducing the original debt amount. During a consumer proposal, you are not required to pay interest, leading to substantial savings over a debt consolidation loan or second mortgage.

  • Avoid bankruptcy

    Many people want to be relieved from debts, but don't want to file for bankruptcy. If you would like to repay what you can, you should discuss filing a consumer proposal with a Licensed Insolvency Trustee. Creditors are more likely to accept a consumer proposal if it offers more than what they expect to receive in a bankruptcy.

  • Pay off early

    During the term of a consumer proposal, if you have enough to pay out the rest of the owed amount, you can do so without incurring any penalty or interest charges, allowing you to repair your credit faster.

Contact Us for Consumer Proposals in Vancouver

To find out if a Consumer Proposal is the right choice for you, please contact one of the professionals at Crowe MacKay & Company at our Vancouver office. We will evaluate your financial situation and explain the pros and cons of the various options available that could help you solve your financial problems. We are here to help. You can also fill out the online form, or send us an email to schedule your appointment.

Get Help With Your Debt

Our experienced LITs can help you file a consumer proposal in Vancouver.

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