How do consumer proposals work?
If you have more than $5,000.00 in debt, but less than $250,000.00, you can submit a consumer proposal. This involves contacting a licensed trustee, who will assess your finances. If the trustee believes you are a viable candidate, he or she will devise a monthly payment plan, in which you pay off your creditors at a discounted rate. The trustee also devises how long it should take to pay them off. This period could be as long as 60 months. The trustee submits this proposal to your creditors. They are allowed to vote for or against this proposal. If the creditors vote for it, you start the payment plan and work your way towards eliminating your debt.
