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About Consumer Proposals

Consumer Proposals are in our opinion the ‘sweet spot’ for debt relief in Canada. They provide reduction options for both people and small businesses that are caught in an overwhelming amount of debt. A consumer proposal is helpful to so many people and so much less destructive than bankruptcy, that we just love working within this debt elimination option and prefer it over many of the alternatives.

YOUR NOT ALONE – More than 45,000 Canadians a year take advantage of this option and have their debt problem dealt with through the Consumer Proposal process.

It allows a consumer (you) to seek legal protection from your creditors under a federal statute whereby you (a debtor – a person who owes money) only repays a portion of what you owe.

At Debt Victoria (4 Pillars), this is the primary area of debt relief that we specialize in and are so well known for throughout Canada. Here are some of the major advantages that a proposal can offer a person in debt. It can:

  • Reduce your monthly payments and the amount owing down by 50-80% (meaning if you owed $50,000 you may end up owing $15,000-$25,000 in total and your payments may drop by the same amount comparably – in this example a client’s payments may drop from say $1200/month down to less than $425/month.)
  • Reduces the interest rate to zero percent (yes 0%)
  • It allows you to KEEP all of your assets (house, car, etc.)
  • It gives you up to 60 months to pay off the settled amount with no early payment penalties.
  • Stops wage garnishments, Revenue Canada collection activity, and creditor legal actions (eg. – if the bank is suing you for an unpaid debt this will stop that)

This is truly an amazing debt relief option and we would love to show you what it can do for you. We would be happy to answer more of your questions about consumer proposals so give us a call or send us an email.

Consumer proposals can be tricky to get approved at an affordable amount and require creativity when they are being structured.

The problem is a consumer proposal must have a representative of the creditors (creditors are the people you owe money to – banks etc) to be filed, and this agent for the creditors is a bankruptcy trustee; and too often people go directly to a trustee to get them done without fully understanding the role they play.

The trustee is an officer of the court who acts on behalf of the creditors in a fiduciary capacity. In other words, the Trustee in fact WORKS FOR the creditors (not you) and is in a way a collection agent for the creditors. So you are not doing yourself any favors when you work directly with the person who is required to collect off you.

The trustee represents your creditors and has a duty of care to look after the interest of the creditors; There are thousands of trustees across Canada and they all view the Bankruptcy and Insolvency Act (BIA) in a different way which can have a dramatic impact on how much you pay back in a proposal. Example – if you see the wrong trustee you may end up paying vastly more than you should pay and many of the Trustees in Canada like to push people toward Bankruptcy as they can collect more fees in a Bankruptcy.

Our mandate is to represent you, and help you get the BEST DEAL POSSIBLE! (as in largest reduction in your debt and the most savings for you). This equals SAVINGS SAVINGS SAVINGS!

Everything we do is driven by this desire to help you get the best deal possible. We have access to hundreds of trustees in Canada and will structure the consumer proposal that is in your best interest and find a trustee willing to file it on your terms. Think of this like a mortgage broker shopping hundreds of lenders to get you the best rate vs a bank employee that only has access to his/her bank’s mortgage products. This means we always get the BEST DEAL POSSIBLE – every time!

Many people who don’t use our services get pushed into bankruptcy because they are never presented the option to file a consumer proposal, or the only option they are given is one that it is simply unaffordable.

At 4 Pillars Victoria (DebtVictoria) we work for you, and only represent you, not the creditors. This ensures you get the best deal possible every time and we and make sure your proposal has the best chance of success.

Our success rate is over 98%!

We have helped literally Thousands of people just like you eliminate your debts and move on financially.

This is NOT walking away from your obligations and responsibilities. It is in fact the opposite. This program helps you FACE your debt problem (challenge) head on and do the BEST YOU CAN DO with what you can afford, by allowing you to make this offer to the creditors. Since THEY accept the offer, this means they are agreeing that this is a fair deal. So they are happy and you are happy. It is truly the WIN WIN for both you and your creditors. It feels good to be debt free knowing you did a fair deal.

Why do a Consumer Proposal?

1. DROP YOUR PAYMENTS – It can Drop your Monthly Unsecured Debt Payments to less than 1/3 of what you are paying now (*results vary depending on many financial factors – call us for an idea of what it could do for you with your exact situation).

  1. SAVE YOUR ASSETS – it protects your assets
  2. ITS NOT BANKRUPTCY – no bad stigma, and fast credit repair
  3. REDUCE YOUR DEBTS – it actually reduces the overall amount owed – meaning you can get out of debt FAST = Financial Freedom is almost assured!
  4. IT IS SAFE – you have legal protection from the creditors so you don’t have to worry about collections or judgements or garnishments – all the types of things that could happen to you if you tried to reduce your debts on your own.

For more information please contact us for a confidential, no-obligation consultation.

Living Debt Free Feels Amazing!

Enjoy life after debt

We can help you reduce your debt by up to 80% and get your life back.