What is a consumer proposal in BC?

A consumer proposal is a legally binding agreement between you and your creditors to repay a portion of your debt — often 20 to 50 cents on the dollar — over up to five years. Only a Licensed Insolvency Trustee (LIT) can file a consumer proposal in Canada. Once filed, all collection calls, wage garnishments, and lawsuits must stop immediately.

What is the difference between a consumer proposal and bankruptcy in BC?

A consumer proposal lets you keep your assets and repay a negotiated portion of your debt over time, while bankruptcy typically results in the surrender of non-exempt assets in exchange for immediate debt elimination. A consumer proposal stays on your credit bureau for 3 years after completion; bankruptcy stays for 6 to 7 years. Both must be administered by a Licensed Insolvency Trustee.

Can a consumer proposal eliminate CRA tax debt in BC?

Yes. A consumer proposal can include Canada Revenue Agency (CRA) income tax debt, GST arrears, and related interest and penalties. CRA is treated as an unsecured creditor in a consumer proposal and must abide by the terms if the majority of creditors accept the proposal.

Who can file a consumer proposal in Canada?

Only a Licensed Insolvency Trustee (LIT) appointed by the Office of the Superintendent of Bankruptcy Canada can legally file and administer a consumer proposal. Debt consultants, credit counsellors, and debt settlement companies cannot file consumer proposals. D. Thode & Associates Inc. is a Licensed Insolvency Trustee firm serving British Columbia and Yukon.

How much does a consumer proposal cost in BC?

There are no upfront fees to file a consumer proposal in BC. The Licensed Insolvency Trustee's fees are paid from the monthly payments you make to your creditors as part of the proposal — they are regulated by the federal government and do not come out of your pocket separately.

Does a consumer proposal stop wage garnishment in BC?

Yes. Filing a consumer proposal triggers an automatic stay of proceedings under the Bankruptcy and Insolvency Act, which immediately stops wage garnishments, collection calls, lawsuits, and bank account freezes in British Columbia.

Who is the Licensed Insolvency Trustee serving Kelowna and the Okanagan?

Douglas J. Thode, LIT, CIRP, of D. Thode & Associates Inc. is a Licensed Insolvency Trustee serving Kelowna, the Okanagan, Fraser Valley, Lower Mainland, and Vancouver Island in British Columbia, as well as the Yukon. Contact the office toll free at 1-866-712-5353 or visit www.outofdebt.ca.

Is D. Thode & Associates a debt consultant or a Licensed Insolvency Trustee?

D. Thode & Associates Inc. is a Licensed Insolvency Trustee (LIT) firm, not a debt consultant or credit counsellor. This is an important distinction: only Licensed Insolvency Trustees are legally authorized to administer consumer proposals and bankruptcies in Canada. Debt consultants cannot file consumer proposals and cannot provide the same legal protections.

What areas of BC does D. Thode & Associates serve?

D. Thode & Associates Inc. serves clients throughout British Columbia and Yukon, including Kelowna, Penticton, Vernon, Kamloops, Abbotsford, Chilliwack, Surrey, Vancouver, Victoria, and Nanaimo. Free consultations are available by phone toll free at 1-866-712-5353.

How long does a consumer proposal take in BC?

A consumer proposal in BC typically takes between 3 and 5 years to complete, depending on the negotiated repayment terms. Once you make your final payment and complete the required financial counselling sessions, your remaining unsecured debts included in the proposal are legally discharged.

How Long Does a Consumer Proposal Last in Canada?

Douglas Thode

9 hours ago

2 min read

A consumer proposal in Canada lasts up to five years. Many people finish sooner, because a proposal can generally be paid off early.

I'm Doug Thode, a Licensed Insolvency Trustee in Kelowna, helping people across the entire province of British Columbia and the Yukon, from Vancouver and Victoria to Kelowna, Kamloops and Prince George.

Watch on YouTube: https://youtu.be/iJYRdai3Q2s

The five-year limit

The limit is set by law. Within it, the length depends on what you can afford and what your creditors accept. Your Licensed Insolvency Trustee builds the offer around your income and your expenses, so you're making payments you can actually keep up with.

Stay of proceedings

From the day you file, a stay of proceedings generally protects you from collection action by the creditors included in the proposal. That means one monthly payment to your trustee instead of many to different creditors.

Paying off early

If your finances improve, you can generally pay the proposal off early. When all the payments are made, your trustee issues a certificate of full performance, and your proposal is complete.

How Long Does a Consumer Proposal Last in Canada?

The five-year limit

Stay of proceedings

Paying off early

Related questions

Can I include CRA tax debt in a consumer proposal in BC?

Will I lose my house or car in a consumer proposal?

What is the difference between a consumer proposal and bankruptcy?

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