Consumer Proposal – Process

What’s The Process?

Step 1: Consultation
Becoming debt free begins with a free, no obligation initial consultation with a licensed Trustee in Bankruptcy where your Trustee will review your situation and explain your options.

Step 2: Notification
If you make an informed decision to file a Consumer Proposal based on the facts provided by your Trustee:

  • Your creditors will be notified of your consumer proposal;
  • Your creditors have 45 days to vote on your proposal;

Step 3: Vote
If creditors possessing more than 50% of your proven debt approve your proposal then all creditors are bound by it and the proposal moves forward.

If creditors possessing more than 50% of your proven debt reject your proposal then your Trustee will help you negotiate.  You never have to deal with your creditors directly.

While you are protected from your creditors during the voting process that protection ends in the event that your proposal is rejected by a majority of your proven creditors. In other words your creditors can once again pursue you in the event that your proposal fails to be approved.

Step 4: Court Approval
Deemed Court approval is granted unless a creditor objects within 60 days after you file your proposal.  Creditors only object in extremely rare cases, and you are only required to appear in court in the highly unlikely event that a creditor or the Office of the Superintendent of Bankruptcy has requested that the Proposal Administrator seek court approval.

Step 5: Credit Counselling
You’ll attend two free credit counselling sessions with a credit counsellor registered with Industry Canada.  Welker and Company employs it’s own accredited counsellors so you won’t be referred to another organization or agency.

Step 6: Pay The Proposal
You’ll make payments to your Trustee as agreed-upon during your initial consultation, and your Trustee will distribute those funds to your creditors once every 12 months.

Step 7: Completion
You’ll receive a certificate of completion upon making all payments to your Trustee and fulfilling all of your duties.  Thereafter you can focus on rebuilding your credit and enjoying your new debt free life.


Unlike in bankruptcy, individuals who file consumer proposals are not required to:

  • Report their income on a monthly basis;
  • Provide income tax information to their Trustee; or
  • Surrender any of their assets.
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