How Consumer Proposal Works: A Step-by-Step Guide
In today's financial landscape, many individuals find themselves overwhelmed by debt. With rising living costs and unexpected expenses, it’s not uncommon for people to seek solutions that can help them regain control of their financial situation. One such solution is a consumer proposal. This legal process allows individuals to negotiate a manageable payment plan with creditors, offering a path toward financial recovery. In this blog, we’ll explore how a consumer proposal works, outlining the steps involved to help you navigate this financial option confidently. What is a Consumer Proposal? A consumer proposal is a formal agreement between a debtor and their creditors, made under the Bankruptcy and Insolvency Act in Canada. It enables individuals to settle their debts for less than what they owe, allowing them to make payments over a specified period, typically up to five years. Unlike bankruptcy, a consumer proposal allows you to keep your assets while providing a structured pl...