A happy family whose debt was eliminated by a consumer proposal

Filing a Consumer Proposal in Campbell River, BC

A consumer proposal is a legal process in British Columbia that allows an individual to negotiate a settlement with their creditors to repay a portion of their debts over a set period of time, typically 5 years.


Consumer proposals in Campbell River, BC are administered by licensed insolvency trustees (LITs) who work with you to develop and file your proposal. LITs are the only professionals in Canada who can file a consumer proposal (or personal bankruptcy) and they are regulated by the Office of the Superintendent of Bankruptcy, unlike non-licensed debt consultants.

When you work directly with a Licensed Trustee, filing a consumer proposal in Campbell River is a straightforward process that can begin quickly after your free initial consultation. The process involves a few simple steps, including:

1. Meet with a Licensed Insolvency Trustee

First you will schedule a free consultation with a licensed insolvency trustee firm, like Smythe Insolvency, to discuss your financial situation and explore all possible options for debt relief.

2. Prepare your consumer proposal

If you and your Licensed Insolvency Trustee (LIT) determine that a consumer proposal is your best option, your LIT will help you prepare and file your proposal. They will negotiate with your creditors on your behalf to significantly reduce the amount of debt you need to pay back. The payments negotiated will be fixed, interest-free, and will be manageable for you and within your budget.

3. Creditors vote on your consumer proposal

Once the proposal is filed, your creditors have 45 days to vote on whether to accept or reject the proposal. If a majority of creditors (based on the dollar value) vote in favour of your proposal, it becomes legally binding on all creditors and your consumer proposal is approved. Very rarely a consumer proposal is rejected, but if it is, your Licensed Insolvency Trustee will simply go back and renegotiate your proposal with your creditors.

4. Make your monthly payments

Once your proposal is accepted, you will be expected to make your payments to the trustee (as outlined in your proposal), usually over a period of up to five years.

You will also be required to complete two mandatory credit counselling session with a qualified insolvency counselor to help you with budgeting and planning for the future.

Consumer proposals in Campbell River can provide significant relief for individuals struggling with debt. They offer a structured repayment plan that allows you to avoid bankruptcy and protect assets such as your home and vehicle. Consumer proposals help reduce the total amount of debt owed by negotiating a settlement with creditors.

It is important to note that not all debts are eligible for a consumer proposal, and it is essential to consult with a licensed insolvency trustee to discuss all options and determine the best course of action for your individual financial situation.

Book your free debt relief consultation in Campbell River now and let’s get you debt free!