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.

Include credit cards, personal loans, medical bills. Exclude mortgage, car loans.

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You May Qualify for a Consumer Proposal

$0
0% potential debt reduction
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:

  1. Total unsecured debt between $10,000 and $250,000
  2. Unable to pay debts as they come due
  3. Resident of Canada
  4. 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