Consumer proposal: Effective solution to reduce your debts

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Proposal of consumer

Reduce your debts without losing your assets. Free yourself from the burden of your debts with the consumer proposal, a legal alternative to bankruptcy that allows you to start fresh.
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What is a consumer proposal?

The consumer proposal is a legal solution governed by the Bankruptcy and Insolvency Act that allows you to settle your debts for a fraction of the total amount you owe, while keeping all your assets. It is an official agreement between you and your creditors, administered by a licensed insolvency trustee.

How does it work in practice?

  1. You meet with one of our trustees to assess your financial situation
  2. We prepare an offer to creditors to partially repay your debts (usually between 20% and 50%)
  3. If the majority of your creditors accept, ALL your creditors are legally bound to respect the agreement
  4. You make fixed and affordable payments over a maximum period of 5 years
  5. At the end of your proposal, all included debts are legally considered fully settled

An example for better understanding:

Marc has gotten himself into debt up to his neck with $50,000 in credit cards, personal loans, and overdue taxes

  1. With our help, he files a proposal offering to pay $20,000 (40% of the total)
  2. His payments are $333 per month for 60 months
  3. He saves $30,000 from his original debts
  4. He keeps his house, his car, and all his assets
  5. Once the proposal is completed, he is fully released from his $50,000 in debts

Important fact: As soon as your proposal is filed, collection calls and legal actions against you stop immediately. You regain your peace of mind right away.

Take control of your finances starting today.

Don’t let the burden of debt control your life. Take the first step towards financial freedom by scheduling an appointment for a free and no-obligation consultation.

Main Advantages

  1. You keep all your assets — Retain your home, your car, and your RRSPs
  2. Major reduction of your debts — Effectively reduce your debts
  3. Fixed monthly payments — Unlike bankruptcy, your payments do not increase if your income improves
  4. Immediate legal protection — No more creditor calls or wage garnishments
  5. Limited impact on your credit — The R7 rating remains on your record for 3 years after completion (vs. 6-7 years for bankruptcy)

Detailed Comparison: Consumer Proposal vs. Bankruptcy

Aspect
Consumer proposal
Personal bankruptcy
Conservation of your belongings
You keep all
Risk of losing certain goods
Duration
3-5 years
9 to 21 months (first bankruptcy)
Impact on the credit file
Note R7 (3 years after the end)
Note R9 (6-7 years after release)
Stability of payments
Fixed amount, even if your income increases
Variable according to your income
Income statement
Initial
Monthly throughout the duration
Professional consequences
Minimal for most jobs
May limit certain careers

Are you eligible for a consumer proposal?

To be eligible for a consumer proposal, you must:

  1. Have debts of less than $250,000, excluding the mortgage on your primary residence;
  2. Be unable to repay your debts according to the scheduled deadlines;
  3. Be able to offer more to your creditors than they would receive in the event of bankruptcy.

Debts that can be included in your proposal

  • Credit cards and store cards
  • Personal loans and lines of credit
  • Bank overdrafts
  • Medical and service bills
  • Outstanding taxes and duties
  • Student loans (if completed more than 7 years ago)
  • Phone bills and other services

Debts that cannot be included

  • Alimony and family obligations
  • Fines, tickets, and legal penalties
  • Mortgages and auto loans (unless you abandon the asset)
  • Recent student loans (less than 7 years old)
  • Debts resulting from fraud or misconduct

The process in 7 easy-to-understand steps:

Here’s how a consumer proposal works:

1. Free initial consultation

  • Confidential meeting with one of our trustees
  • Comprehensive analysis of your financial situation
  • Clear presentation of all your options

2. Preparation of your proposal

  • Detailed assessment of your assets and debts
  • Calculation of a realistic repayment amount and schedule
  • Careful preparation of official documents

3. Official submission of the proposal

  • Filing with the Office of the Superintendent of Bankruptcy
  • Immediate legal protection against your creditors
  • Halt of interest on all included debts

4. Communication with creditors

  • Professional presentation of your proposal
  • Creditors' vote (45-day period)
  • Additional negotiations if necessary

5. Acceptance and implementation

  • Formal confirmation of acceptance
  • Establishment of monthly payments
  • Participation in two mandatory educational financial consultations

6. Compliance with commitments

  • Regular monthly payments as per the agreement
  • Ongoing support from our team
  • Option to make additional payments to finish sooner

7. Complete discharge of debts

  • Obtaining the certificate of full performance
  • Legal discharge of all included debts
  • Start of active credit rebuilding

Impact on your credit and reconstruction strategies

A consumer proposal will have a temporary impact on your credit file, but less severe than a bankruptcy.

  • The proposal appears as an R7 notation on your credit report
  • This notation remains visible for 3 years after your last payment
  • Your score will temporarily decrease (typically between 100 and 200 points)
  • Many financial institutions view the proposal as a responsible financial management step

Typical progression for rebuilding your credit

Period

Credit opportunities

During the proposal

Secured credit cards, some car loans with significant down payment

1-2 years after the end

Regular cards, personal loans, better conditions for car loans

2-3 years after the end

Possibility of obtaining a mortgage with certain lenders

3+ years after the end

The note R7 is removed, normal access to credit

Typical progression for rebuilding your credit

  1. Obtain a secured credit card - An excellent first tool for rebuilding
  2. Pay all your bills on time - Even small amounts matter
  3. Maintain a low credit utilization rate - Use less than 30% of your credit limits
  4. Gradually diversify your types of credit - Different types of loans enhance your profile
  5. Regularly check your credit report - Ensure it contains no errors

Our trustees at your service

At Tremblay CIE, our trustees have the expertise and experience necessary to confidently guide you throughout the process.

Our commitment to you

Professional expertise

Human approach

Transparency

Personalized support

Our trustees at your service

The fees are regulated and included in your monthly payments. There are no upfront fees to file a proposal. During your free consultation, we will explain in detail the fee structure, which generally represents about 20% of the total amount of the proposal.
The maximum duration is 5 years (60 months). You can also make additional payments to finish more quickly and start your financial rebuilding sooner.
The amount depends on several factors: the value of your assets, your disposable income, the total amount of your debts, and what creditors are likely to accept. Our goal is to find a balance between an affordable monthly payment for you and an attractive offer for your creditors.
If you miss three monthly payments, your proposal will be automatically canceled. However, we understand that unforeseen circumstances can arise. If you anticipate temporary difficulties, please contact us immediately to explore the available options before it is too late.
Only if you have joint debts. If your spouse has not co-signed your debts, their credit score and finances will not be affected. We can also assess the possibility of a joint proposal if both of you are facing financial difficulties.
Certainly! This is one of the major advantages of a consumer proposal. As long as you continue to make your mortgage and auto loan payments, you keep all your assets, unlike bankruptcy where some assets may be seized.
Our trustees have extensive experience and are familiar with the acceptance criteria of major creditors. We formulate realistic and well-balanced proposals, which explains our high acceptance rate. After filing a proposal, we can modify it to facilitate acceptance.
Yes, but with certain restrictions. You can generally obtain a secured credit card and, in some cases, an auto loan with a substantial down payment. We will advise you on the best strategies to gradually rebuild your credit during your proposal.
No. Your employer is not informed of your consumer proposal unless you work in certain financial or regulated sectors where specific disclosures are required. Confidentiality is maintained throughout the process.
Depending on your particular situation, the alternatives may include: bankruptcy, debt consolidation, or a settlement with your creditors. During your free consultation, we will thoroughly review all available options to help you make the most advantageous choice.

Success Stories

Here are some concrete examples of people like you who regained their financial freedom through a consumer proposal with Tremblay CIE.

Tremblay Family

  • Initial situation: $65,000 in debt accumulated from credit cards and personal loans, constant financial stress, unable to make ends meet
  • Our solution: Consumer proposal of $32,500 spread over 60 months (payments of $542 per month)
  • Result: Savings of $32,500, retention of their home, end of creditor calls, return to a normal life without financial stress

Marc-André

  • Initial situation: $38,000 in debt after a job loss, credit cards maxed out to pay for groceries and rent
  • Our solution: Consumer proposal of $15,200 over 36 months (payments of $422 per month)
  • Result: Savings of $22,800, a financial fresh start, credit rebuilding already well underway, new job without the burden of debt

Genevieve

  • Initial situation: $42,000 in debt after a difficult divorce, risk of losing the family home, struggling to support her children
  • Our solution: Consumer proposal of $16,800 over 48 months (payments of $350 per month)
  • Result: Savings of $25,200, retention of the family home for her and her children, regained stability, better future for the whole family

Take control of your finances today.

Don’t let the burden of debt control your life. Take the first step towards financial freedom by scheduling a free, no-obligation consultation.

How to contact us:

  • Phone: 888-549-5642
  • Online: Fill out the form below
  • In person: Consultations available in several offices or via videoconference

Why act now?

  • Every day that passes, your debts continue to grow due to interest
  • Protection starts immediately after filing your proposal
  • The sooner you start, the sooner you will regain your peace of mind
  • A consultation does not commit you to anything, but it can completely change your financial future

Money problems can happen to anyone, at any time. At Tremblay CIE, we are here to help you regain your financial balance and start anew on solid foundations, without judgment and with compassion.


The longer you wait, the more your situation may deteriorate. Contact us today to find out how a consumer proposal could be the ideal solution to your debt problems.



Our services to serve you everywhere


Tremblay CIE offers free consultations for consumer proposals. Our licensed trustees meet you in our offices or via videoconference according to your preference.

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