A Cambridge Consumer Proposal in Depth

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Consumer Proposals and Your Credit

How do consumer proposals impact your credit in Cambridge?

Generally, with the filing of bankruptcy or a consumer proposal, the rating agencies allocate a very low to lowest credit score. It is no different in Cambridge. The credit rating is withdrawn after a certain period, depending on the data type and where you live. A Consumer Proposal does not remain on the credit report all the time. It can stay on your credit report for up to six years from the date you file it. One of the advantages of a Consumer Proposal is that if you pay it faster, then the duration of time it appears on your credit report is lessened. 

Obtaining Credit in Cambridge after a Consumer Proposal


Your ability to secure credit in Cambridge relies upon your ability to convince a lender that you are a reasonable credit risk, despite the consumer proposal setback. There is no obligation on the part of a lender to extend credit to anyone.

After repaying the debt:

  • Send copies of the final documents to the significant credit-reporting services.
  • Be sure all the information has been documented accurately.
  • Keep copies of everything for future transactions too.


If you have had problems following a consumer proposal, please feel free to consult with our office in Cambridge. For more information, contact us through this site, or call our offices for an appointment at (519) 621-8484. 

Debt inclusions in a consumer proposal

What are the debts included in a consumer proposal?

Generally, consumer proposals deal with unsecured debt that does not demand the security of an asset like a house or vehicle. These contain:

  • Credit Cards
  • Personal Loans
  • Lines Of Credit
  • Payday Loans
  • Income Tax
  • Some Student Loans


If this total debt is less than $250,000, you are qualified to file a consumer proposal. If you are inquisitive, contact our Cambridge Consumer Proposal Trustee – Dana MacRae, to discuss a Division 1 proposal if you do not entitle to a consumer proposal.

Secured Debts

Secured debts are guaranteed repayment by an asset, like a house or automobile, and are not a part of consumer proposals. That means the bank, credit union, or any other financing agency takes possession of your asset and resells it to recover the loan. If you file a consumer proposal, you can either resume to pay the secured creditor to retain title to the asset or stop those payments and surrender the asset.

Secured loans consist of vehicles secured by the car, truck, motorcycle, or recreational vehicle and mortgages guaranteed by the real estate. Even though the secured creditors are not involved in the agreement, they get notifications when you file a consumer proposal. Your consumer proposal amount can be adjusted if you do not wish to submit your asset.

Financial struggles need not be permanent. A consumer proposal is a chance for a fresh financial start in Cambridge, enabling you to restructure your repayment schedule and get you out of debt. 

Do not wait anymore. Our counseling staff at Dana MacRae can offer you options for repayment and help you determine the best course of action. Contact us now to help resolve your financial issues at (647) 812-6405.

Contact our office for more detailed information about this process and your situation.

Pros and Cons of Consumer Proposals


What are the pros and cons of a consumer proposal?

Consumer proposals are government-authorized settlement programs in Cambridge for unsecured debts. A consumer proposal helps you to save assets from liquidation, is a bankruptcy alternative, and makes it more manageable to recover and rebuild credit. It is a form of negotiation with creditors.


Advantages of a consumer proposal

  • Deduction of unsecured debt by as much as 75%
  • Avoid bankruptcy
  • Consolidate debts into a single monthly payment of a fixed amount
  • Legally settle debts, including the Canada Revenue Agency (CRA)
  • Slight damage to your credit rating
  • Faster and earlier financial recovery


Disadvantages of a consumer proposal

  • The exclusion of secured debt 
  • It affects the credit rating through the debt write-offs
  • You will be considered a high-risk borrower
  • Exclusion of seven-year-old student loans 
  • It impacts your overall financial structure.


Alternatives to a consumer proposal

If you do not have a regular, stable income; have large secured debts; or are not solvent, there are other options to consider:

  • Bankruptcy
  • Debt consolidation
  • Debt Counseling sessions


Our Cambridge office can also provide advice and counsel about various options. We train our discrete, non-judgmental staff to consider all options and discuss options with you. We will be delighted to examine your complete financial status and history and help you make the best judgment possible under the current circumstances. We are happy to set an appointment for you at your convenience without obligation or charge, or you can book an appointment through our website.

Call us at (519) 621-8484 for a fresh, tension-free financial start. 

Articles we prepared on Consumer Proposals in Cambridge

Bankruptcy vs. Consumer Proposal: The Impact on Tax Refunds

Bankruptcy vs. Consumer Proposal: The Impact on Tax Refunds

Navigating the path toward financial stability involves making informed decisions, and two significant options to consider are bankruptcy and consumer proposals. Both avenues provide a way out of debt and offer distinct asset management approaches. When it comes to...

Cancelling a Consumer Proposal: What You Need to Know

Cancelling a Consumer Proposal: What You Need to Know

Are you considering cancelling a consumer proposal? You may have changed your mind about pursuing debt relief through this method or want to explore other options. Whatever the reason, it's essential to understand the implications of cancelling a consumer proposal...

A Guide On Including Your Car In Your Consumer Proposal

A Guide On Including Your Car In Your Consumer Proposal

We frequently see customers with credit card debts and other unsecured debts like car loans. Many debtors own a car or truck when they file for bankruptcy. While the threat of bankruptcy is stark on its own, not having your own transport can derail your plans of...

Can I file a consumer proposal multiple times?

Can I file a consumer proposal multiple times?

In Canada, a consumer proposal is a judicial debt settlement agreed with creditors to reduce your debt, administered by a Licensed Insolvency Trustee. The consumer proposal must be paid within five years or less with the help of monthly payments. Being a great...

Applying for Credit during a Consumer Proposal

Applying for Credit during a Consumer Proposal

A Consumer Proposal is a legally binding choice to forgive the debt, in which you give back a portion of what you owe to your creditors without paying any interest. Only Licensed Insolvency Trustees (LITs) can administer Consumer Proposals, and they conduct any...

Does Consumer Proposal remain on Credit Report all the time

Does Consumer Proposal remain on Credit Report all the time

The consumer proposal might be an ideal way to overcome your debt, but it can damage your credit ratings. Your credit score is closely connected to your credit report since the report contains all your missed or late payments. However, it is deleted from your credit...

Filing a Consumer Proposal – Will I lose my home?

Filing a Consumer Proposal – Will I lose my home?

Filing for a consumer proposal can be an intelligent way to protect yourself from creditors and negotiate to pay off a portion of your debt. But have you ever thought about how a consumer proposal affects your home? What is a Consumer Proposal? A legally binding...

Role of a Licensed Insolvency Trustee in Canada

Role of a Licensed Insolvency Trustee in Canada

Selecting a debt advisor is a crucial step in your overall debt recovery. Licensed Insolvency Trustees (LIT) are Canada's only federally regulated debt advisors. The Licensed Insolvency Trustees outline your options and advise you on how to get out of debt and obtain...

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