HELPING YOU SOLVE YOUR DEBT PUZZLE
Consumer Proposals in BC: The Best Alternative to Bankruptcy
A consumer proposal can result in savings of as much as 70-80% however, the consumer proposal’s cost is based on your personal situation.
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What is a Consumer Proposal?
A consumer proposal is an alternative to filing a bankruptcy. It is a negotiated debt settlement with all your creditors, with the help of a Licensed Insolvency LIT/Administrator. The magic of a consumer proposal is that once approved, it is binding on all your creditors, even if some of them don’t agree. And, as soon as you start the process, there is a legal Stay of Proceedings that gives you immediate legal protection from your creditors or collection agencies and all interest charges immediately stop.
Is a Consumer Proposal right for You?
If you are struggling to pay off your debts and keep current with family expenses, a consumer proposal may be right for you.
Under a Consumer Proposal you make an offer, or a proposal, to your creditors based on one fixed monthly payment you can afford. This offer is made to your creditors with the assistance of a Licensed Insolvency LIT/Administrator like C. E. Craig & Associates Inc.
Our debt elimination team will work as a mediator between you and your creditors – to help negotiate the best deal possible for all parties.
A consumer proposal is not the right choice for everyone. But it may be the right choice for you. You owe it to yourself to take advantage of this fully legal and responsible solution.
How Much Do I offer My Creditors in a Consumer Proposal?
The consumer proposal is a negotiated settlement between you (the debtor) and your creditors with the assistance of a Licensed Insolvency LIT/Administrator. Our golden rule of a successful consumer proposal is that the cost of a consumer proposal must work for both the debtor and the creditor.
For creditors to accept your proposal, they will want to receive more than they would recover if you file bankruptcy or the terms of the proposal offer them some other sort of “benefit”. (e.g. Lump Sum offers to settle upfront vs over a longer period of time)
The needs and wants of the creditors are considered along with the affordable and reasonable payment obligations of the debtor – a mediated fair settlement for all.
Need Debt Help?
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Easily understand your debt solutions like a Consumer Proposal, book a free consultation with the C.E. Craig & Associates Team. Our experienced Licensed Insolvency trustees will be there to support you through debt relief.
What Payment Terms are in my Consumer Proposal?
Your proposal amount can be paid over a period of up to 5 years, interest-free.
Most people choose a fixed monthly payment, spreading their settlement offer over three to five years. However, lump sum payments or adjusting your repayment schedule to match your pay period are options.
Consumer proposals can also be paid off early at any time. So, if you receive and inheritance, lottery winnings, or a better paying job, you can accelerate your payments.
Once your debt proposal is accepted you make one, single monthly payment to the LIT/Administrator. This makes a consumer proposal a lower-cost alternative to a debt consolidation loan as the loan will continue to charge interest and you will have to pay 100% of the debt back.
What similarities are there between a Bankruptcy and a Consumer Proposal?
Both a Bankruptcy and a Consumer Proposal:
- Are governed by the Bankruptcy and Insolvency Act (BIA) in Canada and must be implemented with the assistance of a Licensed Insolvency Trustee who will act as an Administrator under the proposal or Trustee in the bankruptcy.
- Take advantage of the Stay of Proceedings under the BIA – this means that all collection and garnishments cease upon filing.
- Result in interest charges no longer being incurred (does not apply to secured loans or non-dischargeable debts)
- Requires you to make full disclosure to your LIT of you family income and expenses, and the value of assets you own, as of the date of filing.
- Does not affect the rights of secured creditors.
- Automatically includes All creditors anywhere in the world – there is no “picking and choosing.”
- Are Legally binding on all creditors.
- Require each debtor to attend two counselling sessions.
Why Choose C.E. Craig & Associates Inc?
At C.E. Craig & Associates, we have helped thousands of people file Consumer Proposals – Individuals from Nanaimo, Victoria, other locals on Southern Vancouver Island, and now Surrey. We have the professional expertise and experience to help.
The vast majority of proposals we have filed have been accepted by creditors. – saving thousands of dollars for debtors in interest payments alone. We find that our Consumer Proposals are accepted by the creditors because we understand what creditors will accept in a settlement offer. And creditors know that a Consumer Proposal offers more to them than they would get in a personal bankruptcy.
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Need Debt Help?
Book Your Free Consultation
Easily understand your debt solutions like a Consumer Proposal, book a free consultation with the C.E. Craig & Associates Team. Our experienced Licensed Insolvency trustees will be there to support you through debt relief.
How We Help Individuals
Other Personal Insolvency Services
Personal Bankruptcy
When you are feeling overwhelmed with debt, a personal bankruptcy may be the best solution to help you make a fresh financial start.
Consumer Proposal vs Personal Bankruptcy
For those wanting debt relief, our insolvency team will provide you with advice on how to consolidate your debts into one easily manageable payment per month.
Debt Relief
For those wanting debt relief, our insolvency team will provide you with advice on how to consolidate your debts into one easily manageable payment per month.
Consumer Proposal Resources & Information
Read the latest guides, insights, and resources prepared by our team to help you have peace of mind with your consumer proposal.
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By Colleen Craig, CPA, CA, FCIRP • March 25, 2026If you’re considering a bankruptcy or consumer proposal, one of the most common and important questions is: How do Licensed Insolvency Trustees get paid? Many people worry about hidden fees -
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There can be many solutions to debt problems and every person’s story is unique. At C.E. Craig & Associates Inc. we take the time to listen to you – to help find the best option for you. Every journey begins with one single step.