Pembroke, Ontario

Consumer Proposals

  • BDO Pembroke
    Pembroke, Ontario


Most people who owe money to creditors want to pay their debts, but simply need a bit more time or help to organize their finances to come up with a feasible repayment plan. A consumer proposal offers an honest debt solution that can help you pay off your debts by negotiating a repayment plan with your creditors. Payments are made through a Trustee or proposal administrator who will redistribute a portion of your monthly payments to each of the creditors. There are several key benefits to choosing a consumer proposal to pay off your debt:

  • You can negotiate with creditors to only pay a part of your debt instead of the full amount you owe
  • Interest charges are stopped
  • You will be debt free in five years or less (the repayment plan cannot be longer than five years)
  • A proposal is legally binding
  • Harassing calls from creditors and threat of wage garnishments will stop
  • Consumer proposals include many types of unsecured debt, i.e. money owed without collateral such as credit cards, lines of credit, bank loans, and taxes
  • You will be able to keep your assets, e.g. car, home
  • No additional fees are required beyond your agreed-upon monthly payment

Consumer proposals are a win-win solution for you and your creditors. While your creditors can recover some, if not all, of the money that is owed to them, you can simultaneously eliminate your debt. As long as the consumer proposal allows creditors to recover more money than through other debt solutions, creditors will most likely choose to accept the proposal.

No hidden cost to filing a proposal

BDO Pembroke recognizes that the cost of professional help can be worrisome if you are struggling to pay bills and day-to-day expenses as it is. When you make a proposal to creditors, you only pay the consolidated monthly amount that they agreed to and  which you budgeted for. There are no additional fees.

Qualifying for a consumer proposal

Consumer proposals are a good debt solution if you:

  • Are carrying debt between $5,000 to $250,000
  • Have assets (car, house, RRSPs, etc.) that you do not want to give up
  • Want relief from accumulating interest
  • Want to repay your debts, but just need more time and/or a more reasonable repayment plan
  • Have a spouse (it may even be possible for you and your spouse to file a consumer proposal together, which would increase the allowed debt-ceiling amount to $500,000)

Check out an example of a consumer proposal here.

Filing a consumer proposal

The thought of making a consumer proposal can be intimidating, especially when you may not understand what is happening, the legal terminology being used, and the steps involved in the consumer proposal process. Your Trustee will guide you through the process and take care of many of the steps on your behalf.

A consumer proposal is just one of the debt help solutions offered by BDO Pembroke. You can also speak to us about other debt management options, including financial counselling or a bankruptcy filing.

For complete information, we encourage you to contact the Pembroke office or request a call.