Short Answer

A consumer proposal is absolutely worth it!

Longer Answer

In Alberta, a consumer proposal is a very attractive option because you don’t have to pay any interest and a trustee can help you settle your debts for much less than you owe. On average, BNA Debt Solutions clients only pay back 37% of their current debt load, a significant decrease from the original amount owing. A consumer proposal can only be administered by a Licensed Insolvency Trustee, not an accountant or a lawyer, and there are two things to consider:

  1. There must be an advantage to the creditors to accept the terms, which means they need to get back more than they would if you filed for bankruptcy or they will turn it down.
  2. If you have little money or assets (home equity) to pay toward the debt, then this might not be the right option for you. The advantages are many when you opt for a consumer proposal. A few of them are that you can include your tax debt to the Canada Revenue Agency; your payments can possibly be amended if your circumstances change; you will receive financial counselling; and you don’t pay any additional fees or interest to your Trustee.