Consumer Proposal process in Cambridge

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An insight into the Consumer Proposal Process in Toronto

What is a Consumer Proposal?

Consumer Proposal Process in Cambridge

A consumer proposal is a legally binding agreement that modifies your repayment terms. Consumer Proposal enables you to negotiate your debt with creditors, expand the timeframe you must pay off your debt, or reduce the interest payments. According to Government regulations, Licensed Insolvency Trustees are the only individuals allowed to create Consumer Proposals for security reasons.

To initiate the consumer proposal process, you need to:

  • Provide the Licensed Insolvency Trustee (LIT) with a list of all your assets and liabilities. 
  • Attend the preliminary meeting with the creditors if an appointment is requested. 
  • Attend two counseling sessions without fail. 
  • Advise the Licensed Insolvency Trustee of any address change
  • Assist the Licensed Insolvency Trustee during the administration of the proposal. 


Solutions offered by our Cambridge Consumer Proposal Trustee

While a consumer proposal may not be for everyone to rebuild their finances, it is one of the solutions provided by the debt counselors and Licensed Insolvency Trustees in Cambridge. Trustees like Dana MacRae offer a wide array of services for Cambridge residents to simplify debt.

Call today (519) 621-8484 to discover more about Dana MacRae’s services and which financial solution is the right option for you.

Consumer Proposal Process

Understanding the consumer proposal process in Cambridge

The process for a consumer proposal in Cambridge and across Ontario involves the below steps:- 

  • The Licensed Insolvency Trustee files the proposal with the Office of the Superintendent of Bankruptcy (OSB).
  • After you file the proposal, you stop paying your creditors.

The Licensed Insolvency Trustee submits the proposal to the creditors. This report includes your current financial situation and the causes of the economic hardship. Your actions get discontinued if you have garnished wages or pending lawsuits. 

Meeting of Creditors

A meeting is immediately arranged without hesitation whenever one or more creditors are owed more than 25% of the total proven claims. Creditors have up to 45 days to either accept or reject the proposal or, if a conference of creditors is held, before or during the meeting. The Superintendent of Bankruptcy can also request the Licensed Insolvency Trustee to call a session within those 45 days. Upon being called, the creditors’ meeting must be held within 21 days. At the meeting, the creditors vote to accept or reject the proposal. Regardless of any objections, the proposal is automatically approved if no meeting is summoned. 


Consumers vote on whether to accept or reject the proposal in the meeting. The steps include: –

  • A creditor’s acceptance or rejection counts as a vote.
  • A simple majority (over 50%) decides the final call. The number of votes should be the same as the proven claims’ total value. For example, if the proven claims total $150,000 and the votes represent $75,001 of the shares, the simple majority governs the final call. All unsecured creditors must accept that vote.
  • If there is no quorum of creditors present, the proposal is accepted automatically.

If the proposal is accepted, any interested party has 15 days to ask the Licensed Insolvency Trustee at Cambridge for a review by the court. The court approves the proposal if there is no request. 

Acceptance of a Consumer Proposal

If a consumer proposal is accepted in Cambridge, you:

  • Are accountable for paying the LIT either a lump sum or periodic Cambridge payments. 
  • Will be needed to conform to any other conditions in the proposal.
  • Retain all properties and investments as long as you continue payments.
  • Must go through two financial accounting sessions.

Rejection of a Consumer Proposal

If the consumer proposal is rejected in Cambridge, you:

  • Make changes and resubmit during the creditor consideration period or at the creditor’s meeting
  • Think about other alternate options
  • Declare bankruptcy

Meeting the Conditions

You would be legally discharged from the debts listed upon meeting all conditions in the proposal. There are occasions in which you can revive a proposal if it is canceled. If you miss three payments, or if they are above three months past due, the proposal gets withdrawn automatically. Your creditors are free to take action to collect the money they are owed, including accrued interest, unless the court ordered otherwise or the consumer proposal has been amended.

If you have any questions or concerns, our Dana MacRaeCambridge Insolvency Trustee staff is here to support you. We help you make the best decision regarding your financial straits. Call today(519) 621-8484 to learn more about our services and encounter your present financial solution.

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

Bankruptcy is not your only option

Bankruptcy is not the only solution when you face financial struggles. Canada offers several options; one among them is the Consumer Proposal. However, that is not the only alternative.

To determine the best course of action, you should arrange an appointment with one of our accredited debt counselors. You can handle this over the phone, via video conference, or in person.

It is free, and you are under no obligation to proceed. All our meetings are confidential, and we in no way judge your actions.

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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