A consumer proposal offers an alternative to bankruptcy. For example, you may ask your creditors to reduce the amounts owing to them or request more time to pay the amounts due.

A consumer proposal must be made to all preferred and unsecured creditors, but it does not affect the rights of secured creditors. The terms of the proposal must be completed within 5 years and must offer the creditors at least what they would be paid in a bankruptcy. Consumer proposals are aimed at those who do not have many debts or complicated financial affairs. Non-mortgaged debt must be below $250,000.00.