man who is happy and debt free because he filed a consumer proposal

Filing a Consumer Proposal in Fort St John, BC

A consumer proposal is a formal debt settlement agreement between an individual and their creditors that is filed with a Licensed Insolvency Trustee (LIT).

A consumer proposal in an option that is available to consumers in British Columbia who are struggling with debt but want to avoid declaring bankruptcy. If you are a resident of Fort St John and considering a consumer proposal, here are some things you should know:


In order to file a consumer proposal, you must have a minimum of $1,000 and a maximum of $250,000 in unsecured debt, which includes (but is not limited to) credit card debt, tax debt, ICBC debt, and student loan debt. If your debt exceeds $250,000, you may need to consider filing for personal bankruptcy in BC instead.


To file a consumer proposal in Fort St John, you should always work directly with a Licensed Insolvency Trustee (LIT). Your LIT will review your financial situation, including your assets, income, and expenses, and then work with you to create a proposal that your creditors will accept. When your proposal is accepted by the majority of your creditors, you will make fixed, interest-free payments to the LIT every month, who will distribute the funds to your creditors. You will also be required to attend two financial counseling sessions.


One of the main benefits of a consumer proposal is that it allows you to consolidate your debts into one manageable payment. It also stops creditors from taking legal action against you, such as garnishing your wages or seizing your assets. In addition, a consumer proposal stays on your credit report for three years after you complete the payments, whereas a bankruptcy can stay on your credit report for up to seven years.


It’s important to understand that a consumer proposal is a legally binding agreement, and if you fail to make the required payments, your proposal could be annulled, and your creditors could resume collection activities. In addition, a consumer proposal can impact your credit score, although it is generally less severe than a bankruptcy.

If you are considering a consumer proposal in Fort St John, it’s important to speak with a Licensed Insolvency Trustee to discuss your options and determine whether it’s the right choice for you. The LIT can provide you with personalized advice based on your unique financial situation and help you create a proposal to help you achieve the fresh financial start you deserve.