Consumer Proposal Process British Columbia – 5 Easy Steps to Financial Wellness


5 Steps to filing a Consumer Proposal in British Columbia

  • Step 1 – Meet with our team at Sheila Smelt and Associates and review your financial situation
  • Step 2 – Together build a debt repayment plan, ‘the consumer proposal’ representing about 30% of your original debt and an affordable monthly payment based on your ability to pay.
  • Step 3-  Your lenders, known as the ‘creditors’ will review the proposal and vote to accept the consumer proposal repayment plan
  • Step 4 – You meet your obligations, repaying the agreed amount and attending the required 2 credit counselling sessions
  • Step 5 – Begin your journey of Financial Wellness

Consumer Proposals filed in British Columbia, are a legally binding agreement between you and your creditors.  A proposal is an agreement that will reduce your total debt amounts, end interest charges, stop garnishment and protect your assets. Consumer proposals British Columbia are regulated by the Federal Government of Canada, through the Superintendent of Bankruptcy, designed to provide unfortunate and honest Canadians with an alternative debt reduction solution that will avoid Bankruptcy.  Consumer Proposals British Columbia can only be filed by Licensed Insolvency Trustees and an LIT has an obligation to review all your options with you. [/column_1]

consumer proposal document signing

  • Repay a portion of your debt, through no-interest,  manageable monthly payments determined by your ability to pay.  Up to 85% debt reduction can be achieved by a consumer proposal with your creditors
  • Keep your assets that you have worked hard to acquire, your home, cars, tax refunds, RRSP’s are protected from creditors.
  • No high interest fees, all interest charges are stopped upon filing a consumer proposal with the Superintendent of Bankruptcy
  • Stops collection agencies & garnishments, and creditors from harassing you.
  • One single, affordable monthly payment, based on your ability to pay.

How to Qualify for a Consumer Proposal

building budget for consumer proposal

As a federally regulated program, through the Office of the Superintend of Bankruptcy, Consumer Proposals have specific requirements you must meet:

  • You must have a stable income, your creditors need to know that you have the ability to pay the amount agreed to in the proposal
  • Your assets must be less than what you owe,  when this occurs you are considered insolvent and a candidate for a consumer proposal in BC.
  • Your unsecured debt must not exceed $250,000 but be more than $1000.00 (not including your mortgage)  If your debt is higher than $250k there is a special proposal process we can discuss.
  • You can only have one active consumer proposal filed with the Superintendent of Bankruptcy, if you have filed bankruptcy or a consumer proposal in BC they must be completed and in good standing.

What debt can be included in a Consumer Proposal

A consumer proposal is a legal offer to all your unsecured creditors to repay only a portion of your existing debt, the types of debt that can be included in your proposal:

  • Personal loans
  • Payday loans
  • Credit card balances
  • Unsecured lines of credit
  • Revenue Canada – CRA tax debt
  • Student Loans – Some post secondary education loans
  • direct lenders, secondary market lenders, pay-day loans, credit card companies, and collection agencies, which will all be included in the proposal to reduce your debt.

Sheila, Lisa and their team will help you to develop a proposal for a payment plan that works with your ability to pay and gets you out from under that crushing debt load, on a path to financial wellness.

Financial wellness





Find out how a Consumer Proposal Can Help You. Speak to an Advisor Today!