An Alternative to Bankruptcy

What is a Consumer proposal? A consumer proposal is an agreement that you make with your creditors to pay your debts, but on a different timetable.

Avoid Bankruptcy

According to Industry Canada’s Office of the Superintendent of Bankruptcy Canada, “A consumer proposal is an offer made by debtors under the Bankruptcy and Insolvency Act (BIA) to modify their payments to creditors.” It has also become an effective alternative to filing for bankruptcy. Bankruptcy puts a bad mark on your credit report and makes it more difficult for you to get favourable loans for large purchases in the future.

This is where the Exelby and Partners Ltd. team of licensed professionals can help. We’ll consider your options. We’ll review at your finances and the debts that you owe to your creditors to tell if a consumer proposal is right for you. According to Industry Canada “If you are an individual and your total debts do not exceed $250,000.00 (not including debts such as a mortgage secured by your principal residence), a consumer proposal might be the right choice for you.”

Exelby and Partners Ltd. will prepare the proposal according to your income and debts. We’ll also send the proposal to all of your debtors. Industry Canada notes that “Creditors then have 45 days to either accept or reject the proposal. If no meeting of creditors is requested within 45 days of the filing of the proposal, the proposal will be deemed to have been accepted by the creditors – regardless of any objections received.”

Benefits of a Proposal

Once your creditors and the courts approve your proposal you’ll have immediate relief from your creditors and less of an effect on your credit report than bankruptcy would make. You’ll pay back debts according to the terms of the proposal, and Exelby and Partners Ltd. will be with you during this step as well.

A consumer proposal does several things when approved. Most wage garnishments stop, interest stops accumulating, collection companies and creditors can no longer contact you, you are not in jeopardy of losing your house or other assets, and you repay only a portion of your debt owing with a maximum repayment period not exceeding five years.

However, a consumer proposal will not allow you to pick and choose which debts to include, eliminate your support and alimony obligations, eliminate certain student loan obligations, or deal with your secured debts, such as your house mortgage and car loan. Learn more about filing a consumer proposal in cities like Grande Prairie, Fort McMurray, Red Deer, Edmonton, and Spruce Grove. Our licensed professionals are available to help you in Alberta, Northwest Territories, or Nunavut. Contact us today!


We care about your financial state, and we will do whatever we can to get you back to financial security, while minimizing your stress levels during a difficult time.