An Ottawa Consumer Proposal in Depth

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Consumer Proposals and Your Credit

Understand how Consumer Proposals impact your Credit in Ottawa

Generally, with the filing of bankruptcy or a consumer proposal, the rating agencies assign a very low to lowest credit score. It is no different in Ottawa. Information on your credit rating is removed after a certain period, depending on your data type and where you live. A consumer proposal remains on your record for several years following the time it gets paid off.

Obtaining Credit in Ottawa after a Consumer Proposal


Your ability to secure credit in Ottawa 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 issues following a consumer proposal, please consult our Ottawa office. For more information, contact us through this site, or call our offices for an appointment at (613) 824-9115. 

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 Ottawa Consumer Proposal trustee 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. If you file a consumer proposal, you can either continue to pay the secured creditor to retain title to the asset or stop those payments and surrender the asset. That means the bank, credit union, or any other financing agency takes possession of your asset and resells it to recover the loan.

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. You can adjust your consumer proposal amount 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 Ottawa, enabling you to restructure your repayment schedule and get you out of debt. Our counseling staff at Dana MacRae can present you with the options for repayment and help you decide the best course of action. 

Do not wait anymore. Contact us now to help resolve your financial issues. 

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 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
  • Quicker and earlier financial recovery


Disadvantages of a consumer proposal

  • The exclusion of secured debt 
  • It impacts the credit rating through the debt write-offs
  • You will be considered a high-risk borrower
  • Exclusion of seven-year-old student loans 
  • It affects 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 Ottawa office can also provide advice and counsel about these options. 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 train our discrete, non-judgmental staff to consider all options and discuss options with you. 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 (613) 824-9115 to start your financial life afresh. 


Articles we prepared on Consumer Proposals in Ottawa

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