If your debt (not including any mortgages on your home) is under $250,000*, a Consumer Proposal may be the best way to get relief. A Consumer Proposal allows you to consolidate your debts while avoiding filing for bankruptcy or losing your assets. You usually repay only a portion of your debt while the rest is forgiven. The amount you pay is based on your ability to pay, not on how much you owe.
*Note: If you owe more than $250,000 in (non-mortgage) debt, there is a similar solution called a Division I Proposal which we can also provide.
Calgary Licensed Insolvency Trustee Charla Smith & Company can help determine whether a Consumer Proposal is the right option, and we have the expertise and experience to arrange and administer your Consumer Proposal without the need for you to engage a debt consultant.
Canadian law allows individuals struggling with less than $250,000 in (non-mortgage) debt to make a Consumer Proposal to their creditors to obtain debt relief while avoiding bankruptcy or losing their assets. (Those with more than $250,000 may qualify for a Division I Proposal, which we are also licensed to provide.)
A Consumer Proposal is a legal process to negotiate an extension of time and/or a reduction of debt with all your creditors at once. It stops interest from accruing and includes a ‘stay of proceedings’ which stops creditors from taking any further action. Even a creditor that objects to this proposal will be required to abide by it if the majority of other creditors have agreed.
We will work with you to determine whether a Consumer Proposal is your best option, and if it is, we will collaborate with you to develop a proposal to creditors that is achievable for you. Then we work with your creditors to help them understand your proposal and why we recommend they accept it.
We are with you every step of the way to make sure your proposal has the best possible chance of success and we never lose sight of your goal of achieving freedom from the stress your debt is causing you.
