Struggling with debt may feel like sinking into quicksand. Every struggle pulls you deeper. You’re not alone, and there’s hope. At BNA Debt Solutions, 97% of consumer proposals ultimately secure creditor approval, leaving only about 3% unresolved after negotiations. That figure reflects the entire process, including any back‑and‑forth needed to land on a fair, realistic offer.
Put simply, proposals work when two boxes are ticked: firstly, the offer matches what creditors accept as reasonable, and secondly, your budget shows you can make every payment over the usual five‑year term.
In this guide, we’ll explain why proposals are rarely rejected, what motivates creditors to approve, and how to ensure your proposal succeeds so you can regain your financial freedom. First, let’s explore what a consumer proposal is, what creditor expectations are, and why it’s a better choice than bankruptcy.
What Is a Consumer Proposal and Why Could It Be Your Lifeline?
A consumer proposal lets you offer manageable monthly payments to your unsecured creditors (credit‑card issuers, payday lenders, even the Canada Revenue Agency) for up to five years, usually for far less than the full balance owed. Filed through a Licensed Insolvency Trustee (LIT), it pauses interest and collection calls while the offer is reviewed.
When is the debt forgiven?
Once you’ve completed all proposal payments set out in the plan, any remaining unsecured balance is legally wiped out. Until then, the debt is on hold—no interest, no late fees, no collection action.
When a Proposal May Be the Better Option
Bankruptcy can solve severe debt problems, but it also has trade‑offs that many people want to avoid. A consumer proposal helps you steer clear of the biggest ones:
- Keep your assets: Your home, car, and belongings will all remain in your possession. Unlike in bankruptcy, where they can potentially be sold to pay off your debt.
- Less credit impact: You’ll receive an R7 credit rating (a note on your credit report showing debt management), which fades faster than bankruptcy’s R9 rating (lasting 6–7 years).
With an astonishing approval rate of 97%, a consumer proposal is a reliable way to regain control, tailored to your budget and backed by a fair offer to creditors. Why do proposals succeed almost all of the time? Let’s find out.
Why Consumer Proposals Work: The 97% Success Rate
Most consumer proposals ultimately succeed with about 97% approval vs. 3% rejection. Because they’re negotiated until both sides are satisfied. Your Licensed Insolvency Trustee (LIT) refines the offer through back‑and‑forth with creditors, making sure the final terms give them more than they’d get in bankruptcy, even if you repay only a fraction of the original balance.
Creditors also value the proposal’s legally binding structure: your assets stay protected while they receive a predictable payout.
| Factor | Why It Drives Approval |
| Fair Offer | A reasonable proposal, tailored to your budget, outperforms bankruptcy recovery, motivating creditors to agree. |
| Steady Income | Consistent income demonstrates to creditors that you can sustain payments for up to five years, thereby reducing the risk of rejection. |
| Tax Compliance | Having all returns filed, especially if the CRA is involved, shows you’re acting in good faith and removes administrative objections. |
| Responsible Recent Behaviour | Avoiding excessive spending or last‑minute credit splurges builds creditor trust and prevents rejections over perceived “bad behaviour.” |
As Heather, one of our team members, says:
“Remember that when you are filing a proposal, you’re asking your creditors to accept less than the full amount you owe to settle your obligation. They are agreeing to receive a reduced repayment over five years, and for them to consider it worthwhile, the proposal needs to be reasonable, fair, and accurately reflect your financial capacity.”
Harman notes that in 2024, proposals meeting those criteria achieved a 97% success rate.
“Because a proposal typically yields creditors more than they’d get in bankruptcy while allowing you to keep your home, car, and other key assets, outright rejections are rare. More commonly, creditors respond with a counteroffer to adjust the payment amount or term.”
So, how does this process come together? Let’s break down the steps of a consumer proposal to understand why it’s so effective.
How a Consumer Proposal Works: The Process
What if one signature could freeze interest, silence the collectors, and keep the keys to your car exactly where they are? At BNA Debt Solutions, we’ve helped thousands of Albertans turn this into reality, getting them free from debt’s grip. So, how does this process work? We propose a plan to your creditors that’s built for success.
Here’s the breakdown:
- Check Your Finances: We look at your income and debts to confirm that your steady income can support payments for up to five years. If you owe money to the CRA, all tax returns must be filed before the proposal is submitted. The CRA won’t approve a proposal unless you’re fully tax compliant.
- Make a Fair Offer: We design a reasonable offer for unsecured creditors (like credit card companies or CRA) that beats bankruptcy payouts. Our trustee’s report shows creditors why your offer is better than bankruptcy recovery, based on your income and assets.
- Negotiate and Secure Approval: Creditors’ voting must happen within 45 days. During that window, our in‑house negotiators work with them to refine any terms and address questions. Thanks to this proactive approach, about 97% of the proposals we submit ultimately gain creditor approval.
- Pay and Move On: You manage your new debt relief program with affordable payments, often with tax compliance for CRA debts, and the rest vanishes.
If creditors counteroffer, we’ll keep you in the know and help you tweak the plan. It’s your path to manage your new repayment for a fresh start. With such a high success rate, flat-out rejections are rare. Curious about what could trip you up? Let’s dive into that next.
What Could Go Wrong? Why Proposals Get Rejected
We’ve discussed how consumer proposals succeed 97% of the time. But what about the 3% of consumer proposals rejected when creditors might disapprove?
Don’t worry, consumer proposal rejections are not frequent, and there’s often a counteroffer to keep you on track. At BNA Debt Solutions, we understand why a consumer proposal fails in that 3%.
Here’s what can trip up your proposal:
- Unrealistic Offer: Proposing too little, such as copying a friend’s $12,000 deal, won’t work. Creditors expect a fair offer based on your finances.
- Shaky Income: Creditors need to know that your steady income can handle payments for five years.
- Creditor Concerns: If a single creditor or a group whose combined claims equal at least 25% of your debt votes “no,” creditors reject the initial terms and can request a Meeting of Creditors within 21 days. We’ll be right there to negotiate any tweaks and only move forward with changes you approve.
The good news? Creditors usually counter with a higher offer, and we’ll help you tweak it to stay on course. Let’s explore how to make your proposal a sure thing.
How to Maximize Your Approval Chances with BNA
At BNA Debt Solutions, we’ve helped thousands of Albertans create proposals that creditors can’t refuse. Here’s how to make your proposal a winner:
- Offer What’s Fair: Your reasonable offer needs to fit your budget and exceed what creditors would recover in bankruptcy, which is often just 10 to 40 cents on the dollar, depending on your income and assets. Creditors expect your best offer upfront, so don’t try to match a friend’s $12k deal for $100k debt, because your finances are unique.
- Prove a Steady Income: Demonstrate to creditors that you can manage payments for five years with a consistent income. We’ll review your finances to ensure it’s doable.
- File All Taxes: Owe the CRA? Filing all taxes ensures tax compliance, which is essential to avoid rejection, as the CRA requires up-to-date records.
- Avoid Recent Splurges: Creditors review your spending. Large charges or missed payments before filing can appear as “bad behaviour,” risking a counteroffer or rejection.
Plan for Financial Changes: Expect to pay off a car loan in two years? Offer higher payments later on in the Proposal term to show good faith and boost approval odds.
Why BNA Debt Solutions Is Your Trusted Partner
Debt feels like a storm tearing your life apart. Every missed payment, every creditor call may feel like it is chipping away at your hope. We get it, and we’ve been there with countless Albertans. BNA Debt Solutions isn’t just a business; we’re a family-owned team in Calgary with 28 years of experience helping people like you find debt relief.
Our Licensed Insolvency Trustees (LITs) know how to set your consumer proposal up for success. We negotiate with major creditors, address creditor concerns, and ensure your proposal is structured effectively. We’ve seen every financial situation and know how to make yours compelling and convincing.
Frequently Asked Questions (FAQs)
What is a consumer proposal?
A consumer proposal is a legally binding agreement to settle unsecured debts for less. This debt management plan offers a proposal for payments over five years, eliminating the remaining debt. It’s a last resort alternative to filing for bankruptcy, helping you manage your debt load more effectively.
Why is the percentage of consumer proposal rejections so low?
The main reason is that we effectively negotiate and provide good counteroffers. The rejection rate for consumer proposals is only 3% at BNA. A fair offer with a steady income outperforms bankruptcy payouts, which leads creditors to accept it. Consumer proposals are often viewed positively by creditors, resulting in a 97% success rate for this debt relief option.
Why might a consumer proposal be rejected?
A consumer proposal might be rejected due to impulsive spending or unnecessary expenses before filing, missing tax compliance, or unstable income. Creditors refuse if the proposal terms aren’t fair, but often counteroffer with better payment terms to meet expectations.
How does the voting process for a consumer proposal work?
The legal process involves making a fair offer to unsecured creditors, who must accept or reject it within 45 days. For a consumer proposal to be accepted, creditors representing over 50% of the dollar value of your debt must vote “yes.” A well-crafted plan helps ensure that approval, resulting in a fair agreement that meets everyone’s interests.
How can I set my consumer proposal up for success?
To set your proposal up for success, offer a reasonable proposal suggesting monthly payments based on steady income. Ensure tax compliance, avoid rash spending, and don’t copy others’ deals. We craft acceptable proposals to meet creditor expectations.
What happens if my consumer proposal is rejected?
A rejected consumer proposal isn’t final until every counter-offer and negotiation avenue has been exhausted, a scenario that occurs in only about 3% of cases. If that happens, your Licensed Insolvency Trustee will circle back to review all your remaining debt‑relief options (such as revising the proposal, filing a new one later, or considering bankruptcy) so you can regain financial control.
Ready to Talk? Book Your Free 30-Minute Debt Chat
If you’re looking into debt relief and wondering, “Would a consumer proposal help me?” the answer is: Yes, a consumer proposal can be a lifeline if it’s structured effectively. It’s about making a fair offer, being honest about your financial situation, and working with a licensed insolvency trustee who knows how to get it right.
Why book now?
- Zero judgment, zero cost. A BNA Licensed Insolvency Trustee maps out your best-case proposal in one focused call.
- Clarity from the first conversation. Walk away with a dollar-by-dollar action plan, no more guessing “What should I offer?”
- Time that adapts to you. We set aside 30 minutes because that covers most situations, but if you need longer, we’ll keep the conversation going or book a follow-up, whatever ensures you leave feeling confident and unrushed.
| What you’ll get in 30 minutes | Why it matters |
| A quick review of your debts, assets, and income | Understand the best options for you and start to feel the relief of knowing you’re on the path to becoming debt-free |
| A fair-offer estimate that creditors typically green-light | Know your likely payment before you decide and commit |
| Straight answers on CRA debt, wage garnishment, or asset protection | Avoid surprises and feel confident about what’s safe and what’s next |
