Consumer Proposal: Canada Debt .ca defines Consumer Proposal

Bankruptcy Term Consumer Proposal

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Canada Debt has the definition to the bankruptcy and debt term Consumer Proposal. Finding answers to terms such as Consumer Proposal can be difficult, especially if there is more than one definition which is why we have created a page dedicated to financial terms dealing exclusively with debt. Consumer Proposal in financial terms means...

In debt and bankruptcy terms, the phrase / term 'Consumer Proposal' is used as follows:

A simplified form of Proposal available to debtors owing less than an amount prescribed under the Bankruptcy and Insolvency Act. In 2002 the amount was $75,000.00, excluding a mortgage on the principal residence. In Canada, a person can file a consumer proposal as an alternative to bankruptcy. A consumer proposal is a negotiated settlement between a debtor and their creditors. A typical proposal would involve a debtor making monthly payments for a maximum of five years, with the funds distributed to their creditors.