Beaudin Groupe Conseil - Demystifying debt, credit

What is a consumer proposal?

A trustee has many different methods at their disposal when helping clients deal with debt. In this article, we will focus on one of the most interesting methods: a consumer proposal.

A consumer proposal is a structured agreement that can help you get out of debt. This agreement is drafted in partnership with a trustee, who is responsible for presenting it to your creditors and negotiating with them if necessary.

The Steps of a Consumer Proposal

    Meeting with a trustee. This is when your trustee will do a complete analysis of your situation and determine if a consumer proposal is the best solution to your debt problem.
    Preparation and submission. The trustee will draft the proposal and submit it to your creditors.
    Negotiation. If necessary, negotiations may take place. In this step, the trustee will act as the facilitator between you and your creditors in order to find common ground.
    Commitment. When the agreement is accepted, you will commit to making the payments outlined in the proposal.
    Budget counselling. You will attend two budget counselling session with the trustee, or a qualified person designated by them. The goal is to equip you with the tools you need to avoid future financial problems.
    Payments. The trustee will be responsible for distributing the proposal payments to your creditors.
    Certificate of full performance. Once the terms of the proposal have been met in full, you will receive a Certificate of Full Performance. This confirms that you have tackled your debt.
    Accounting of file. At this time, the trustee will provide a rendering of accounts to your creditors and to the superintendent. You also will receive a copy. Please note that this is not an invoice. It is a report that you can keep in your files.

How will a consumer proposal affect your credit file?

If this method is used to resolve a debt problem, a note will be added to your credit file. You should be aware that this note will remain on your file for three years after the proposal terms have been fully met. However, you should not see this as a disadvantage. The reality is that if you do not pay your debts, your credit score will be affected, and the results may even last longer than a consumer proposal.

Want to learn more about how to get out of debt? Check out our services for individuals.


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