Short Answer

A consumer proposal is an arrangement that’s negotiated with your creditors through a Licensed Insolvency Trustee. It’s an alternative to personal bankruptcy that is preferred by many debtors in Alberta. They are administered in Alberta the same way they are across Canada by a federally appointed and Licensed Insolvency Trustee under the eye of the Office of the Superintendent of Bankruptcy, a federal government department.

Longer Answer

A consumer proposal is a legal option for all Canadians and Albertans, who are having difficulties paying back their debt. It is a legally binding agreement that is put in place to provide Canadians with immediate protection from debt collectors and it also secures a partial repayment of your total unsecured debt owing, which is agreed upon by the affected creditors.

When you file a consumer proposal with a licensed trustee, you are agreeing to pay a portion of what you owe, and your creditors are also agreeing to forgive the balance. If you have found yourself unable to repay all of your debt, but you can still afford to repay a portion of what is owing, a consumer proposal is a solution to help you move towards financial freedom.

A licensed Insolvency Trustee will work out a payment plan between you and your creditors. If it is accepted, it becomes a legally binding settlement of your unsecured debts. The process is the same in all Canadian provinces and territories, including Alberta.