Bankruptcy Calgary | Making Sense Of Alberta Bankruptcy Exemptions

What Is A Consumer Proposal?

A consumer proposal is a legal solution designed to settle your debt by repaying a fraction of what is owed to your creditors, interest-free, without losing any of your assets.  A consumer proposal includes a repayment plan that can significantly reduce your debts up to 70% saving you from the burden of dealing with the full amount of debt. It also ensures that you are protected from any legal actions from those who you owe and extends the repayment period to something that is more manageable for you, up to a maximum of a 5-year term.

A consumer proposal guarantees:

  • that you can retain control of your assets (i.e. home, vehicle, investments)
  • your existing debts are reduced up to 80%
  • consolidation of your debts into one single affordable monthly payment
  • you pay zero interest
  • an immediate freeze on wage garnishments and collection calls
  • any legal actions imposed by your creditors stop immediately
  • no penalties for early repayment

In many cases, a consumer proposal is the best debt solution for the average individual. Any person with up $250,000 in debt (excluding the morgage on your primary residence) is a candidate. At Hudson & Company, we start you off with a free consultation to help us understand your situation and to show you every option available. The free consultation is with one of our knowledgeable Licensed Insolvency Trustees (LIT), who are best qualified to help you understand the process and weigh-out your options.


Debts That Can Be Included

  • Credit cards
  • Bank loans
  • Tax debt
  • Payday loans
  • Student loans (after 7 years)
  • Utility Bills
  • Phone Bills
  • Furniture Loans

How Does A Consumer Proposal Work?

In your initial appointment, your Licensed Insolvency Trustee will evaluate your personal financial circumstances and assess your best financial options. After you decide to move forward with a consumer proposal, we work with you each step of the way, ensuring that the amount offered to your creditors is something that is affordable and reasonable for both parties. There are multiple considerations to factor in. The total amount of your debt, your monthly income, secured assets, and the size of your family are all considered as part of this process. Based upon this, you and your LIT will work together to determine:

  • the amount you can afford to pay towards outstanding debt each month
  • how much money your creditors could expect to receive in the event that you declared bankruptcy
  • the amount your creditors would expect as a minimum payout

With this information, a consumer proposal will be drawn up for a debt repayment plan that is fair to your creditors and, most importantly, also affordable for you. Our Licensed Insolvency Trustees handle all proposal negotiations with your creditors on your behalf. In almost every circumstance,the payments you agree to are much lower than other debt alternatives. Remaining debts can be as low as 20% of the original amount owed. Methods of repayment are typically either single equal monthly payments, or a lump sum paid throughout a three to a five-year term.


What Happens After The Consumer Proposal Is Filed?

  • The consumer proposal must first be filed with the Office of the Superintendent of Bankruptcy (OSB).
  • Next, your LIT will submit the proposal to your creditors along with a personal report on your personal financial situation.
  • Once filed, you will immediately stop making direct payments to your unsecured creditors.
  • Lawsuits can no longer be filed against you and creditors are not able to garnish your wages.
  • Creditors have 45 days to accept or decline the proposal.
  • The acceptance of the consumer proposal is decided by a majority vote.
  • If the proposal is not accepted your LIT continues to facilitate negotiations between you and your creditors.

The vote!

A meeting of creditors is not always necessary. When a meeting held, the creditors will vote to either accept or reject the proposal. A creditor who wishes to call a meeting must request it within 45 days from the date the proposal was initially filed. If this happens, the meeting date must be set within 21 the expiration of the 45 days.  If no meeting is requested within 45 days of filing, then by default, the consumer proposal has legally been accepted.

Once your proposal is accepted:

  • You are responsible for ensuring that all proposal payments are made
  • You are able to retain control of your assets
  • You are required to attend two sessions of financial counselling

Will I meet the requirements?

A Licensed Insolvency Trustee must determine if you qualify for a consumer proposal.  There are specific requirements that have to be met in order to file a consumer proposal in Alberta.

  • Are you able to pay a portion of your debts?
  • Is the value of what you own greater than your debts?
  • Are your total debts less than $250,000? (excluding principal mortgage)
  • Are able to make monthly and/or lump sum payment(s)?

If you fall within these guidelines, you may be a good candidate for a consumer proposal.

Proposal Advantages

Most of our clients’ unsecured debts CAN be eliminated by a consumer proposal!

  • You do not become bankrupt
  • Avoid more serious action
  • Repay up to 80% less than what you owe
  • Get immediate legal protection from your creditors
  • We will only create a payment plan that you can afford
  • Creditors are legally bound by the terms of your proposal
  • You can rest easy knowing you have repaid a portion what you owe

We recommend a Consumer Proposal to anyone who…

  • Has assets they would like to keep
  • Has total debts under $250,000
  • Would like to avoid bankruptcy
  • Is required by their employer to disclose if they ever become bankrupt
  • Would be required you to make large payments in the case of bankruptcy

Important note: credit councillors and unlicensed debt consultants cannot legally provide consumer proposal services in Canada. These types of services are only able to refer a client to an actual Licensed Insolvency Trustee. With Hudson & Company, no referral is required – it only adds another step to the process. Consumer Proposals must be filed with a Licensed Insolvency Trustee (LIT) according to federal law. Our friendly and highly trained LITs will get started on your consumer proposal immediately. You will receive personalized care, and walk you through every step of the process. 

Our Expertise

Hudson & Company has helped thousands of people living in Alberta overcome insolvency and achieve freedom from debt. Financial setbacks do happen, and they can be unexpected. We offer debt solutions to get you back on track to no more stress and worries. Talk to us about consumer proposals or declaring bankruptcy. Schedule a free consultation with one of our LITs at any time to discuss the best options for your financial situation.

  • We offer free and confidential consultations with any one of our Licensed Insolvency Trustees
  • We are dedicated to finding the most affordable debt solution for you
  • We never charge additional fees or interest
  • We have three conveniently located offices in Calgary
  • We offer evening and weekend appointments

When you come in for your free consultation at Hudson & Company, our team of debt counselling experts will help you through every step in the process with the patience and professionalism that the situation deserves.

Talk to a professional!

As one of the leading Licensed Insolvency Trustee companies in Calgary, we will ensure that you have all the information that you need to make confident and informed decisions. From the moment you step through our doors for your first, free consultation, to that final payment. Our qualified staff will be right there beside you every step of the way! You will always receive prompt service from our supportive team. Our staff will always provide knowledgeable answers to your debt relief questions.

At Hudson & Company, we believe in helping our Calgary customers make well-informed choices regarding solutions to their financial hardships. Call 1-403-265-4357 today to get your questions answered by one of our knowledgeable professionals. We are always ready to assist you with your unique set of financial challenges. Finding our office nearest to you is as easy as one click.

We look forward to helping you become debt-free and gain financial freedom!