GETTING OUT OF DEBT
Is a Consumer Proposal a good idea?
Consumer proposals are one way to deal with your debt that you cannot afford to pay, in certain circumstances. Let’s look at what a Consumer Proposal is and if it’s the right choice for you, from a tax debt perspective.
A consumer proposal is a formal proposal or offer to pay creditors a percentage of what is owed to them. It is usually administered by a Licensed Insolvency Trustee. Once a consumer proposal is filed, creditors have 45 days to either accept or reject the proposal. At that point you will stop making direct payments to your creditors and collections actions are stopped.