North York Consumer Proposals from a Bankruptcy Trustee

elderly-coupleMany residents are likely to pursue a North York consumer proposal versus a bankruptcy through a Trustee in Bankruptcy to solve their debt problems.  The Bankruptcy & Insolvency Act suggests two methods, one in particular is personal bankruptcy and another option is a proposal.

In recent years there has been more consumer proposals filed than bankruptcies. This is a growing trend and likely not to reverse.

What do I Need to Know about Consumer Proposals?

A proposal is an arrangement discussed with creditors through an authorized bankruptcy trustee and acknowledged by the court. A proposal is a lawful agreement which establishes an immediate safeguard from creditors and debt collection companies.

It is a repayment program which is dependent on your (the borrower) fiscal capability. It is likely to be the sum unpaid debts or possibly just a fraction of the amount due. Repayment is through a lump sum or paid off over through monthly installments.

Applying for a proposal isn’t always a guarantee as all proposals must be accepted by the majority (not all) creditors and recognized by the court.

Some basic protections are:

  • Wage Garnishments End Right away
  • Interest Charges Stop Accumulating Immediately
  • Lenders and Debt Collection Firms Cannot Call You

Advantages of a Consumer Proposal

Some assets, like your house or condo, are usually not affected and are typically not a component of the consumer proposal. The moment an individual’s proposal is approved, the amount of money you pay will never rise even if you get a salary raise or come into money. You also will never need to pay above the agreed to amount. The adverse impact on your current credit score is certainly lower than that of a bankruptcy.

There are plenty of positive advantages that you and your creditors can get when choosing a consumer proposal as opposed to applying for personal bankruptcy.

We provide a complimentary consultation which means that a call to our office may be the best tension alleviating phone call you can make.

At Richard Killen & Associates, our North York Bankruptcy Trustee would provide an overview of the different solutions appropriate to your circumstance and offer you professional debt advice so you can select the most desirable option to obtain debt relief.

Give us a call to obtain a free consultation at (905) 513-0699. Our company’s offices are at 2235 Sheppard Avenue East, North York, Ontario, M2J 5B5.

A call to our office can be the most stress alleviating call you will ever make!

For details on North York consumer proposals and just how a Bankruptcy Trustee might help you relieve your financial stress, make sure you get in touch with our North York office today at (905) 513-0699.








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Since 1992, Richard Killen & Associates, a Licensed Insolvency Trustee, have helped thousands of people resolve their financial problems. With 25 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.


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