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Consumer Proposals in Calgary Alberta

Do you find yourself asking, “Is a consumer proposal right for me?” or “Will it truly help me gain control of my financial situation to obtain debt relief without having to file for bankruptcy?” If so, the team from Hudson & Company is here for you.

The process of starting a consumer proposal in Calgary begins as soon as you understand your options and feel comfortable that this is indeed the ideal choice for you. Once you have made the decision to pursue this option, we will proceed to help you through the entire consumer proposal process.

A consumer proposal is a formal and legally binding agreement designed to modify the amount that you owe to your creditors. The main purpose is to propose that your creditors accept a portion of your obligation and forgive the remaining amount, significantly decreasing your monthly payments and eliminating uncertainty through a definite repayment period – generally, 5 years or less.

Your bankruptcy trustee, acting as your proposal administrator, can file a consumer proposal for you if you have outstanding debt between $5,000 and $250,000 yet do not want to declare bankruptcy. We prepare the proposal based on the information that you provide, filing it with the government officer who oversees insolvency administrations in Canada, known as the Official Receiver.

Next, we submit a report about your situation and the consumer proposal to your creditors, which lists the creditors, our professional opinion that the proposal is fair and reasonable, and a guarantee that you can follow through with the plan. Creditors then have the opportunity to vote on the proposal and, once the majority have accepted it, the proposal is legally binding on all of your creditors as long as you comply with the required terms.

To learn more about how a consumer proposal can help you, along with its key advantages, visit our Consumer Proposal Calgary page for a clear and concise overview.

Additional benefits include:

  • Unsecured creditors must file less derogatory credit bureau reports once the proposal terms have been completed. Your credit rating from a consumer proposal typically results in an 7 rating, while if you file for bankruptcy, your credit rating will go to 9 (the worst rating on a scale of 1 to 9).
  • For a consumer proposal, you need to report your income once, upon filing. For a bankruptcy, you need to report your income each month that you are in bankrupt.
  • The consumer proposal remains on your record at Equifax and Trans Union for 3 years after you complete the repayment process, while a bankruptcy remains on your record for 6 years after completion.
  • There is a $250,000 limit for credit claims in a consumer proposal, excluding a home mortgage but including a mortgage on a revenue property. If your debts exceed this limit, then a Division 1 Proposal may be an option for you. A Division 1 Proposal is different from a standard consumer proposal, and thus we will go over the steps for this option when we meet with you.

It is important to note that a consumer proposal also has its own set of disadvantages:

  • If your monthly income declines, your payments are still based on the income that you report on the date of filing the proposal.
  • You may need to pay your creditors a higher total over time: To entice the creditors to accept a reduction in their debt and allow you to avoid bankruptcy, you must make the proposal more financially attractive to them than a bankruptcy.
  • Consumer proposals are negotiated and voted upon, with the number of votes determined by the dollar value that the creditors are owed. If you file for bankruptcy, there is no negotiation, and the creditors have no choice about your filing for bankruptcy.

Finally, the following are ways in which a consumer proposal is similar to a bankruptcy:

  • Both agreements are legally binding on unsecured creditors and will stop legal action from these creditors against you (e.g., wage garnishments).
  • Both will stop a continuation of interest charges.
  • Tax debts can be dealt with in either a consumer proposal or bankruptcy.
  • Under both agreements, certain obligations are not affected or included, such as secured debts, student loans less than 7 years old, as well as child and spousal support.

If you are considering a consumer proposal in Calgary to deal with your debts, our team at Hudson & Company can help you establish a creative, well-planned and well thought out proposal that will seldom be refused.

We will assess your situation, discuss your options with you, and prepare and file a consumer proposal to your creditors. Simply call us today at 403-265-HELP (4357) for your free consultation.

Visit for more information about how a Consumer Proposal can help you.

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