MoneyMatchSmart choices. Better financial futures.
Consumer proposals in Canada

Understand consumer proposals in Canada and compare debt-relief paths.

Learn how consumer proposals work in Canada, when they may fit, what alternatives to compare and what to review before speaking with a Licensed Insolvency Trustee.

Compare Debt Options
4 questions · About 30 seconds · No application from answering
MoneyMatch value

Compare, understand, then choose.

MoneyMatch does not only list financial products. We help explain why an option may fit your situation, what benefits matter, and what trade-offs to review before applying.

Personalized matches

Use a short matching flow to sort options by goal, amount, credit profile or spending style.

Clear comparisons

Compare key details side by side instead of jumping between provider pages.

Education built in

Learn the pros, cons, costs, alternatives and responsible-use details on the same page.

Choose your path

Start with the debt-relief path that matches your situation.

A consumer proposal is one formal debt solution, but it should be compared with informal repayment plans, credit counselling, debt consolidation and bankruptcy before deciding.

Consumer proposalLearn how a formal proposal may work and what to review with a trustee. Credit counsellingReview budgeting, repayment-plan and counselling paths. Debt consolidationCompare loan-based options when total cost may improve.
Find your match

What debt-relief path are you exploring?

Choose a starting point and MoneyMatch will show educational paths that better match your debt situation, urgency and comparison needs.

Your MoneyMatch results

Based on your answers.

Compare options

Compare consumer proposal and debt-relief paths.

Use the filters to compare educational debt-relief paths. A Licensed Insolvency Trustee is required for a consumer proposal. This page is educational and does not replace professional advice.

4 options

Licensed Insolvency Trustee

Consumer proposal administrator

A Licensed Insolvency Trustee is the professional who can administer a consumer proposal and help review formal insolvency options.

Best forFormal consumer proposal review
Fit noteConsumer proposal and bankruptcy comparison paths
Cost noteReview fees, payments and proposal terms with the trustee
Learn About LITs
Product details

Speak with a Licensed Insolvency Trustee to review your full debt picture, proposal eligibility, payment terms and alternatives.

Credit Counselling

Budgeting and debt repayment support

Credit counselling may fit users who want to review budgeting, repayment plans and informal debt-management options before formal insolvency.

Best forInformal repayment support
Fit noteCounselling and budgeting comparison paths
Cost noteReview fees, plan terms and creditor participation
Compare Counselling
Product details

Review whether counselling is nonprofit or for-profit, what fees apply and whether creditors must agree to any repayment plan.

Debt Consolidation

Loan or credit-based repayment option

Debt consolidation may fit users who can qualify for a lower-cost borrowing option and need a structured way to combine balances.

Best forCombining debts when cost improves
Fit noteConsolidation and personal-loan comparison paths
Cost noteCompare APR, fees, term and total repayment
Compare Consolidation
Product details

Debt consolidation is only helpful when the total cost and repayment plan improve your situation and you avoid reusing paid-down credit.

Bankruptcy Comparison

Formal insolvency alternative

Bankruptcy may need to be reviewed when debts cannot realistically be repaid. It is different from a consumer proposal and should be discussed with a Licensed Insolvency Trustee.

Best forFormal option comparison
Fit noteProposal and bankruptcy comparison paths
Cost noteReview duties, impact and alternatives
Learn More
Product details

This is an educational comparison path, not professional advice.

Estimate before applying

Estimate monthly debt-payment pressure.

Use this simple estimate to compare current debt payments against income before speaking with a professional. It is not a consumer proposal quote.

Debt payments$0
Debt-payment ratio$0
Cash left after fixed costs$0
Education

How consumer proposals work in Canada.

A consumer proposal is a formal, legally binding process. It should be reviewed carefully with a Licensed Insolvency Trustee and compared with alternatives.

A consumer proposal is a formal offer to creditors

A consumer proposal can offer creditors a percentage of what is owed, more time to pay, or both. Payments are made through a Licensed Insolvency Trustee.

A Licensed Insolvency Trustee administers the process

Licensed Insolvency Trustees are federally regulated professionals and are the only professionals authorized to administer consumer proposals and bankruptcies.

Compare effects before deciding

A consumer proposal can affect your credit report, access to credit and financial flexibility. Review payment terms, duties, creditor approval and alternatives.

Consumer proposals are not the only option

Depending on your situation, credit counselling, informal repayment, debt consolidation or bankruptcy may also need to be reviewed.

Debt consolidation Personal loans Credit score guide
Interactive learning

Which debt-relief path should you learn about first?

Use this quick learning section to understand how consumer proposals compare with counselling and consolidation.

A consumer proposal may be worth learning about when debts are difficult to repay under original terms and you need a formal, legally binding path reviewed by a Licensed Insolvency Trustee.
Pros and cons

Pros and cons of a consumer proposal.

A consumer proposal can create a formal repayment path, but it has serious credit and financial implications that must be reviewed carefully.

Potential benefits

  • May reduce the amount repaid or extend repayment terms, depending on the accepted proposal.
  • Payments are made through a Licensed Insolvency Trustee.
  • Can provide a structured alternative to bankruptcy for some people.

What to consider

  • It can affect your credit report and ability to access credit.
  • Creditors must accept the proposal under the process rules.
  • It is a formal insolvency process and should be reviewed with a Licensed Insolvency Trustee.
Alternatives

Consumer proposal vs other debt-relief options.

A consumer proposal is one formal option. Compare alternatives based on debt size, income, affordability, credit impact and whether repayment is realistic.

Debt consolidationCompare loan-based options when cost and repayment improve. Personal loansReview fixed borrowing if you can qualify affordably. Credit score guideUnderstand how debt decisions can affect credit over time.

How MoneyMatch compares options.

MoneyMatch organizes options by user intent, product type, potential fit, cost considerations, eligibility context and responsible-use details. We do not guarantee approval, rates, limits, rewards or timelines.

  1. 01. Intent fitWe separate options by the reason someone is comparing financial products.
  2. 02. Cost clarityWe highlight fees, rates, repayment, reward or account-cost considerations where relevant.
  3. 03. Next stepWe point users to current provider terms before they apply or open an account.
MoneyMatch may receive compensation when users click, apply or complete an eligible action through partner links. Compensation does not guarantee placement and does not change the provider’s approval decision. Always review the provider’s current terms, fees, eligibility requirements and disclosures before applying.
Written by MoneyMatch Canada · Reviewed for Canadian consumers · Last updated July 2026
FAQ

Consumer proposal Canada FAQ.

What is a consumer proposal in Canada?

A consumer proposal is a formal, legally binding process administered by a Licensed Insolvency Trustee. It offers creditors a percentage of what is owed, more time to pay, or both.

Who administers a consumer proposal?

A Licensed Insolvency Trustee administers a consumer proposal. Licensed Insolvency Trustees are federally regulated professionals authorized to administer consumer proposals and bankruptcies.

How long can a consumer proposal last?

Government of Canada information says the term of a consumer proposal cannot exceed five years.

Is a consumer proposal the same as bankruptcy?

No. A consumer proposal and bankruptcy are different formal insolvency options. A Licensed Insolvency Trustee can explain which options may apply to your situation.

Compare selected optionsSelect up to 3 options.