What is a Consumer Proposal?

Consumer-Proposal-by-Full-Circle-Total-Debt-SolutionsWANT TO REDUCE YOUR UNSECURED DEBTS BY AS MUCH AS 75% or 80%?

Your payback is based on your ability to pay, not how much you owe.

A Consumer Proposal is an option if you owe $10,000 or more in unsecured debts and are struggling to make your monthly payments.

Working with one of our Debt Solutions Specialists we will build a proposal that is presented to your creditors.  The goal of the proposal is to either reduce the amount you will have to pay back, extend the current payment period or, a combination of both. By working with Full Circle Total Debt Solutions, our Debt Solutions Specialists will determine if a Consumer Proposal is the best solution for you. Consumer Proposals aim to minimize the damage to your credit score and avoid any risk to your key assets like your home, vehicle and your job. A Consumer Proposal stops all legal action, wage Garnishees, and Orders to pay from CRA, most of all stops all Collection calls.

This process does not include secured debts (mortgage, car loan) but does immediately protect you from creditor’s actions like interest accumulation and wage garnishment.

What is the Process?

Consumer Proposals are formally filed by a licensed Bankruptcy Trustee within your Provincial jurisdiction. Prior to the formal filing our Debt Solutions Specialists will complete a full financial analysis to determine if a Consumer Proposal is your best option and confirm what the lowest offer could be to your creditors. The financial analysis involves us reviewing your unsecured debts, secured debts, income and expenditures and uses this information to compose a proposal that will be accepted by your creditor’s. We will prepare and present the Proposal based on your ability to pay not on how much you owe. Once you start working with Full Circle Total Debt Solutions you may be in a position to stop making payments to your creditors.

When the proposal is approved, you are required to:

  • Pay monthly payments to the Trustee who then passes payments to creditors on your behalf.
  • Abide by the conditions of the proposal.
  • Attend two financial counseling sessions, approximately 40 mins each.

If the proposal is not approved, your options are to:

  • Revise the proposal and resubmit it.
  • Consider other solutions to manage your debts.

Once you have met all the conditions of the proposal you are legally released of the remaining balance of your debts that were included in the proposal. If you should fall three months behind in your monthly payments, your proposal is considered annulled and creditors can contact you again.


  • You pay back less than what you owe.
  • Consumer Proposals places you in immediate protection from debt collectors – Interest stops accumulating, wage garnishing stops, creditors and debt collectors can no longer contact you and all legal action is stopped.
  • You maintain control of your assets (provided you make all your payments).
  • Your payments do not increase if your income increases.
  • Though some creditors can refuse, all you need is 51% of the dollars owed to vote yes for this process to be successful.  Full Circle Total Debt solutions has a 98% acceptance rate. Most Consumer Proposals are accepted because they are a better option for the creditor than you declaring bankruptcy.

What qualifications are needed to file for a consumer proposal?

  • You cannot possibly afford to pay your debts in full with full interest given the time restrictions for the loan and your present income levels.
  • Your total debt picture is between $5000 and $250,000 (all debts excluding your home mortgage).
  • You have an income or the ability to make the required monthly payments.
  • You don’t want to file for bankruptcy due to surplus income payments that could cause loss of assets.

Disclaimer – We are not lawyers, Trustees nor do we provide legal or accounting advice. Should you require legal or accounting advice we recommend you contact a lawyer or accountant in your location.

If you need help finding the option that will help you reduce your debt payments and get out of debt as quickly as possible, call a certified credit counselor at 1-877-220-3328 or get started online for a free analysis of your financial situation or simply chat with us now. You could be just minutes away from debt relief.

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