A consumer proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee, acting as an Administrator. In this process, the Administrator will work with you providing expert consumer debt help to develop a “proposal”: an offer to pay creditors a percentage of what is owed to them.
The term of a consumer proposal cannot exceed five years. Payments are made to the Administrator who then distributes the funds to each of your creditors, less any allowable Administrator fees, in accordance with the proposal terms.
Once you have filed your proposal, actions against you by unsecured creditors, such as executions, wage garnishments, etc. are stayed or stopped. For your proposal to be accepted by the creditors, the majority of creditors (in dollar value) must vote in favour of the proposal.