Consumer Proposals are one of the leading alternatives to bankruptcy in Canada today. To put that into a local context - in 2015, over 55% of all consumer insolvencies filed in Greater Vancouver were Consumer Proposals. The numbers were only slightly lower on Vancouver Island at 44%. For all of British Columbia it was 51%.
A Consumer Proposal is a formal process governed by regulations contained in the Bankruptcy & Insolvency Act, and a Consumer Proposal must be filed through a Licensed Insolvency Trustee. A Debt Management Plan, on the other hand, is an informal arrangement with creditors on terms negotiated by a credit counsellor.
There are some important differences between the two processes, but there are also a few similarities:
These are the differences between a Consumer Proposal and Debt Management Plan:
If you are having trouble repaying your debt and would like to know more about Consumer Proposals, Debt Management Plans and other options, speak with a Licensed Insolvency Trustee who will review your situation in detail and explain all of your options.
BC Bankruptcy & Consumer Proposal Blog