Pros & Cons of Consumer Proposal

Pros and cons of consumer proposal

Table of Contents

Advantages and Disadvantages

Evaluating the pros and cons of a consumer proposal. As you can see with our list, the pros outweigh the cons. Many times, a consumer proposal can be the right answer to helping you dealing with your debt and rebuilding your financial future and getting on with your family life.


  • Reduces the amount of debt you have to pay back to your creditors.
  • You have 60 months (5 years) to pay back with installment payments.
  • Your payments will stay the same over the course of 60 months. If you happen to earn more money over this time period, it will not affect your payments. This is not the case with a Bankruptcy.
  • Your credit rating is not impacted as much as with a bankruptcy. With bankruptcy, this will be on your credit history for 6/7 years after completion, while a consumer proposal will be 3 years after completion.
  • Necessitates that all unsecured creditors stop any wage garnishment
  • If your consumer proposal is accepted by the financial majority, you will also get to keep your assets, provided that you fully complete your proposal with no missed payments.
  • Collection Calls will stop.
  • Interest stops accumulating


  • If you miss 3 months payments without filing an amendment to your consumer proposal, it will be annulled,
  • Regardless, your credit score will be affected with a consumer proposal.
  • Does not cover secured debt credit/creditors

If you are experiencing problems repaying your debt, contact us today for a free initial consultation. Find out what the options are for you, and take that needed next step to getting back on track.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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