A consumer proposal is a formal legal settlement of your debts, negotiated between you and your creditors, and then approved by the court. Consumer proposals are a great solution to your money problems, but only in certain circumstances.
First, you must be a resident of Canada, or have Canadian debts. You may be eligible to file a proposal if your unsecured debts are between $10,000 and $250,000.
Second, you must have the ability to make payments to your creditors as part of your consumer debt proposal, either as a lump sum, or more typically as monthly payments for a period of up to five years.
Third, you must have a licensed trustee to act as the administrator of your proposal. When you contact a proposal trustee, arrange for a no charge consultation, and ask them to explain how much a consumer proposal will cost, and what the chances are of acceptance by your creditors, so you can determine if that is the correct option for you.