Consumer Proposal Calculator
Calculate your potential debt reduction through a consumer proposal in Canada. See if you qualify for 60-80% debt forgiveness.
Calculate your potential debt reduction through a consumer proposal in Canada. Answer 5 quick questions to see if you qualify for 60-80% debt forgiveness.
You May Qualify for a Consumer Proposal
| Original Debt | $0 |
| Reduced Debt | $0 |
| Monthly Payment (60 months) | $0 |
| LIT Fees (estimated) | $2,000 |
| Total Savings | $0 |
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This is an estimate only. Actual terms depend on your specific financial situation and creditor negotiations. Consult a Licensed Insolvency Trustee for personalized advice.
How Consumer Proposals Work
A consumer proposal is a legally binding agreement between you and your creditors, administered by a Licensed Insolvency Trustee (LIT). Key features:
- Debt reduction: Typically 60-80% of unsecured debt forgiven
- Fixed payments: Monthly payments over up to 5 years
- Legal protection: Creditors cannot pursue collection once accepted
- Credit impact: Remains on credit report for 3 years after completion
Eligibility Requirements
To qualify for a consumer proposal in Canada:
- Total unsecured debt between $10,000 and $250,000
- Unable to pay debts as they come due
- Resident of Canada
- Majority of creditors must accept the proposal
Common Questions
How long does a consumer proposal take? The proposal process takes 45 days for creditors to vote. Once accepted, payments continue for up to 60 months.
Will I lose my house or car? No. Unlike bankruptcy, consumer proposals let you keep your assets while reducing unsecured debt.
How does this affect my credit? A consumer proposal appears on your credit report for 3 years after completion. Most people see credit improvement within 1-2 years of completing their proposal.
Last updated: January 24, 2026