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Consumer Proposal


In the event of insolvency, call on the services of Bernier & Associates: our agency handles many consumer proposal files in Ottawa, Gatineau or in our other offices. A consumer proposal is an offer you make to your creditors to settle your debt for less than the full amount you owe. No matter what your situation is, we will provide you with professional support to help you get out of debt once and for all.

What Is a Consumer Proposal?

A consumer proposal is a procedure under the Bankruptcy and Insolvency Act by which you make an offer to your creditors to settle your debts.

It has a number of characteristics and applies only in certain cases:

  • Total amount of debts: The total debt does not exceed $250,000 and excludes the mortgage on the principal residence.

  • Nature of debts: It concerns consumer debts: loans, credit cards, or even lines of credit.

  • Maximum duration: Its duration may not exceed a period of 5 years.

  • Possibility of joint proposal: A consumer proposal may be joint, as long as the debts are substantially the same.

  • Payment options: It may be a monthly payment or lump sum, the sale of an asset or a combination thereof.


You can rely on Bernier & Associates to get out of over-indebtedness. Our competent trustees will advise if a consumer proposal is appropriate for your situation and will help you draft it or will suggest a solution better suited to your needs.

What Are the Advantages of a Consumer Proposal?

A consumer proposal allows you to settle your debts without filing for bankruptcy and can help you reduce your debts by up to 70 percent. You also get to keep your assets, including your home, car and registered retirement savings plan (RRSP). Additionally, any legal proceedings or wage garnishments are suspended, and your employer cannot terminate your employment. Moreover, the reference to the credit bureau is deleted 3 years after the proposal has been fully implemented.


In the event your consumer proposal is refused, rest assured that personal bankruptcy is not automatic. The process is simplified, and there is no meeting of creditors unless requested.


If it applies to your situation, a consumer proposal may allow you to turn your finances around while avoiding personal bankruptcy. In addition, your creditors are generally better off accepting that you pay them only a portion of your debts rather than declaring bankruptcy.



Can a Consumer Proposal Be Cancelled?

When your consumer proposal is accepted by your creditors, you agree to repay them according to the conditions approved by all parties.


If you do not respect this commitment, your consumer proposal may be cancelled, in cases such as:

  • Non-payment: non-payment of the amounts agreed in the proposal may lead to its cancellation. Payments more than 3 months late results in the automatic cancellation of the proposal;

  • Non-compliance with the terms and conditions: if you do not respect the terms agreed in the proposal, this could lead to its cancellation;

  • Update to your financial situation: if your financial situation changes significantly, the agreement may be revised. You can also pay off your debt earlier than expected without interest or penalties.

  • Non-compliance with legal requirements: a consumer proposal must comply with the legal requirements in force. Failure to comply with these requirements may result in cancellation.


Every case is different, requiring a personalised approach. Make informed decisions with the help of our consumer proposal professionals in Ottawa and Gatineau.

Experiencing Financial Difficulties? We Are Here to Help!


If you need help escaping the vicious circle of debt, do not hesitate to contact one of our counsellors. At Bernier & Associates, we guide you through the development of a consumer proposal in Ottawa or one of our agencies in Ontario and Quebec. Come and meet us, and say goodbye to your debts.

The debt restructuring proposal

This proposal can help to avoid the closure of a company.

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