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Reduce your payments without going bankrupt?  Yes, it is possible! A Consumer proposal is a settlement of your debt resulting in a smaller, more manageable payment. It is tailored to the ability of an individual and means that you will only pay a portion of the debt outstanding without any ongoing interest, penalties or upfront fees.

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What is a Consumer Proposal?

Consumer Proposal Calgary with Hardie & KellyA Consumer Proposal is a legal agreement regulated by the Government of Canada which allows for an individual to negotiate a settlement of their debts with their creditors.

A Consumer Proposal can only be made through a Licensed Insolvency Trustee (LIT) who receives the License from the Federal Government of Canada.

If the creditors vote in favour of the Proposal, it becomes a binding contract, which all creditors must accept, even those creditors who did not vote in favour of the settlement.

If the creditors reject the Proposal, the person making the Proposal is not automatically bankrupt and can still explore other options for dealing with his or her debts.

Highlights of a Consumer Proposal

  • A Consumer Proposal allows for the consolidation of unsecured debt usually into one manageable monthly payment.
  • In most cases only a portion of the debt is paid (often as little as 25 cents on the dollar).
  • Payment can be made over as long as 60 months.
  • There is no interest, penalties or other upfront fees.
  • Payments offered to creditors are usually a fixed monthly amount based on current income and are not affected by future promotions, bonuses or wage/salary increases.
  • A Consumer proposal also allows for lump sum payments.
  • In most cases, a Consumer Proposal must offer creditors a better recovery than a Bankruptcy.
  • A Consumer Proposal offers immediate protection from the collection action of your creditors and STOPS all garnishment except for Child support.

How does it affect your assets?

  • You will retain ownership of all of your assets. If you have significant equity in your home, you can refinance and offer a lump sum to your creditors to resolve your debt problems and avoid the sale of your home.
  • Inheritances or lottery winnings are yours to keep.

Consumer Proposal vs Bankruptcy

Consumer Proposals generally result in a better recovery for the creditors than they would receive if a bankruptcy was filed. As a result, they can be used to avoid bankruptcy and are almost always accepted by the Creditors.

Advantages of filing a Consumer Proposal:

  • You will know within 45 days if your creditors have accepted your Consumer Proposal.
  • A Consumer Proposal avoids the stigma of bankruptcy
  • You can act as a Director of a corporation, which is prohibited when you are in bankruptcy.
  • Is a better option to a second or third bankruptcy, which avoids a lengthy period in bankruptcy.
  • It’s easier to rebuild credit especially after a second bankruptcy.
  • Proposals are more acceptable to some prospective employers and for security clearances.

We can prepare a Consumer Proposal for you. Contact Hardie & Kelly Inc. and solve your debt problems with a Consumer Proposal.




I came to Hardie & Kelly to find help for a solution to my financial problems; I have found the solution and people who have cared about me as a person. They have worked hard to ensure that my quality of life is back.

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