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.

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.

What Is the Difference Between a Consumer Proposal and Bankruptcy in Canada?

Q: 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.

Douglas Thode

4 minutes ago

1 min read

A consumer proposal lets you keep your assets and repay part of what you owe over time. Bankruptcy is a legal process where you are released from most debts, but some assets may be sold. I'm Doug Thode, a Licensed Insolvency Trustee in Kelowna, and I help people across British Columbia, from Vancouver and Victoria to Kelowna, Kamloops and Prince George, choose between the two every week.

Consumer proposal

In a consumer proposal, you offer your creditors a payment plan that can run for up to five years. If enough creditors accept, or the time for them to object passes, the proposal becomes binding on all of them. You generally keep your assets, and you make one payment to your trustee.

Bankruptcy

In bankruptcy, you hand over assets above the exemptions in your province, and you attend counselling sessions. A first-time bankruptcy generally lasts nine months, or longer if you have surplus income.

Stay of proceedings

Both options bring a stay of proceedings that generally stops collection action by unsecured creditors, including wage garnishment, once you file.

Which one is right?

Which one is right depends on your debts, your income and your assets. A consumer proposal is not always the better answer, and neither is bankruptcy. A Licensed Insolvency Trustee can compare both with your real numbers.

What Is the Difference Between a Consumer Proposal and Bankruptcy in Canada?

Consumer proposal

Bankruptcy

Stay of proceedings

Which one is right?

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