Consumer Proposal – Eligibility

Am I eligible to file a Consumer Proposal?

You are eligible to file a Consumer Proposal if:

1) You owe more than $1,000;
2) You haven’t had a prior proposal annulled; and
3) Your are insolvent; a fancy way of saying that you don’t have the income or assets to pay your debts.

As a general rule of thumb, consumer proposals make sense for people who:

  1. Own non-exempt assets, such as a home, RESPs, or multiple vehicles; and
  2. Have surplus income.

That said, every situation is unique, which is why it’s best to speak to one of our Trustees to have your situation reviewed.  We can review most situations in a matter of minutes whether over the phone or in person during a free consultation.

Prior Proposal Annulment

Where you have already filed a proposal to your creditors in the past, and that proposal was annulled, you are not eligible to file another consumer proposal until those creditors are paid in full.

If you successfully completed a previous proposal, then you are once again able to file another proposal to your current creditors.

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