The Steps of Filing a Consumer Proposal

Financial Assessment
The first part of filing a consumer proposal involves providing your financial information to a licensed licensed insolvency trustee who will undertake an assessment of your debts, assets, and income. This review of your finances shows what solution (consolidation loan, bankruptcy, consumer proposal, debt counselling) might work best for your unique situation. You will need to give the licensed insolvency trustee a list of:

  • Your budget – a list of your monthly income and of all household and living expenses
  • Your liabilities – credit card debt, loans from businesses and personal sources, outstanding bills, leases, mortgages, no-money-down contracts, etc.
  • Your assets – equity in property, vehicles, boats, etc., savings, items that can be converted into cash such as electronics and jewellery, and so forth.

Once the licensed insolvency trustee has reviewed this information, he or she will explain the following options so that you can make a decision as to which one will be the best solution to your financial problems:

  • Build new money habits-it may be possible to meet your creditors’ repayment demands through changed spending habits, the elimination of certain expenses, and increasing income through a temporary part-time job
  • Take out a consolidation loan that pays off several higher interest rate loans and lowers your monthly payment or speeds up the amount of time it will take you to be clear of debt
  • Request the service of a credit counsellor (a formal process that will be noted on your credit file)
  • Apply for a consumer proposal
  • File for bankruptcy