A Consumer Proposal is a debt repayment agreement negotiated with your creditors through a Licensed Insolvency Trustee. A legally binding settlement is put in place to protect you from debt collectors (they will not be allowed to seize assets or funds), and arrange for the partial repayment of your total debt. Therefore, when you file a consumer proposal, you are agreeing to pay a portion of what you owe. Your creditors agree to forgive, and eliminate, the remaining debt owed. You will have immediate relief from your creditors and there will be a smaller effect on your credit than filing for bankruptcy.