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19 • What is a Consumer Proposal?

consumer proposal

Under the Bankruptcy and Insolvency Act, a proposal is an arrangement between you and your creditors to have you pay off only a portion of your debts to gain complete release without going bankrupt. Proposals are legal agreements filed by a trustee or an administrator that can also extend the time you have to pay off the debt. As well, they may provide some combination of both — paying off a portion of your debts while extending the duration to finish them off. To be viable, your creditors must be better off financially under a proposal than if you were to go bankrupt.

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