Get your smile back with
a Consumer Proposal

The initial consumer proposal offer is based on how much your creditors would get in a hypothetical bankruptcy scenario. The amount will fluctuate based on your household net revenues and your seizable assets’ net value. Most often, the negotiated arrangement with creditors will represent between 20% and 45% of your debts.

Your consumer proposal is subject to an approval process from your creditors. The proposal can either be automatically accepted or it may be subject to a vote by your creditors. If they ask for changes, we will assist to negotiate a reasonable outcome.

The consumer proposal negotiation will usually be impacted by : Your net household revenues and budget The net value of your assets Your total debts Criterias from your specific creditors

Consumer proposals are most often negotiated over a 60-month period. After the consumer proposal’s acceptance, which is between two and three months, it is possible to pay it as quickly as you want. Some people are able to complete their proposal in a few months with the help of family or by using exempt property to pay off the full proposal amount. Others increase their monthly payments to complete the process more quickly.

In contrast with a bankruptcy where you may lose your seizable assets (home, car, RESP, TFSA), in a consumer proposal you keep all of your assets and property.

During a consumer proposal you are allowed to obtain a vehicle financing. It should be noted that considering your credit file is significantly affected, you will most likely be able to obtain second chance vehicle financing solutions. We have been told that rates range between 9% and 15%, for some, the rates could be as high as 30%. If you expect to change your vehicle over the next two years, you may want to consider completing a transaction before going forward with a consumer proposal. There are many factors to consider before deciding. We can discuss options during the first evaluation.

If you are not late with your mortgage payments and municipal taxes, in most cases your financial institution will renew your mortgage. It is, however, highly unlikely that you will be able to change financial institutions or refinance during this time.

Your spouse’s credit file should not be impacted by the consumer proposal unless he or she omits to make the required payments on joint debt if you have any. Make sure to disclose any joint debts you may have with your spouse.

During the consumer proposal you will have “R9” ratings. Once the consumer proposal is fully performed, the ratings will change to “R7”. The information will stay on your Equifax file for an additional three years. For Transunion, the information will be removed at the earlier of three years after the completion of the proposal or six years from the start of the consumer proposal.

If during the proposal your financial situation has a permanent or prolonged period of change, we may re-evaluate your situation and potentially submit an amended consumer proposal. This would still be subject to your creditors’ approval. If you accumulate three monthly late payments or more, your proposal will be deemed annulled. It is possible to have the proposal revived under certain conditions.

At any time, you may choose to file for personal bankruptcy. Your consumer proposal will be automatically annulled.

At Groupe Nantel, our minimum consumer proposal policy is $3,000, which usually consists of 60 monthly payments of $50. The proposals are structured on a case-by-case basis and are subject to creditor approval.