Consumer Proposals

In Edmonton & Northern Alberta

Filing a Consumer Proposal

A consumer proposal is a court-sanctioned process that allows you to negotiate a settlement with your unsecured creditors. It is designed to allow those who cannot afford to pay their debts in full a way to avoid bankruptcy.

For example, if you have $35,000 in unsecured debt (i.e. credit card debts, bank loans, and taxes) and only have $500.00 left each month after your normal living costs, you cannot afford to pay the $1,050 per month minimum payments that would be required. This is the type of situation that a proposal was designed to help with. You could consider making a consumer proposal where you propose to pay the creditors a total of $15,000 over the course of up to a five-year term. In the proposal, you will no interest (this has been frozen by the court), and you end up with one a payment that could be as low as $250.00 per month.

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What is a Consumer Proposal?

Understand the basics of consumer proposals and how they work.

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Consumer Proposals vs Bankruptcy

How are they different? How are they the same? More information here…

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Consumer Proposals & Your Credit

Learn how to get out of debt and build up a strong credit history.

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Debt Consolidation With A Proposal

How does a consumer proposal compare to other consolidation options?

How do You File a Consumer Proposal?

Only a Licensed Insolvency Trustee can file a consumer proposal for you. The first step would be meeting with a proposal administrator at your Trustee’s office. The administrator will assist you in assessing your situation and determining whether or not a proposal will work.

After a detailed review of your finances (i.e. who you owe money to, how much you owe, your monthly cash flow, etc.), the administrator will help you determine what type of offer would be required to satisfy the creditors and whether or not that will fit into your monthly budget. At the same time, the trustee will explain how the proposal process works.

There are fundamental concepts that are essential for you to be familiar with (i.e. voting, the stay of proceedings, etc.). If the numbers appear reasonable for both you and your creditors, the Trustee will help to prepare the documents necessary to file a consumer proposal to creditors.

How do you file a consumer proposal in Edmonton

Who Decides if a Proposal is Acceptable?

For a proposal to be accepted we need to have a majority of the creditors, so there is a formal voting process that takes place. Your unsecured creditors will have 45 days to determine if the proposal is acceptable and as long as we have a majority of the creditors cooperating with the proposal, regardless of which creditors we are dealing with, the consumer proposal is automatically binding on all the creditors involved.

Once the proposal has been accepted by the creditors it is also approved by the court, but this is largely a rubber stamp, as long as the creditors are happy and the proposal has been written properly based on valid information, the court is happy to ratify the creditors’ decision.

Learn how a consumer proposal could work for you!

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Client Reviews

See what our clients have to say about their experience with Goth & Company Ltd.

Goth & Company Ltd. LIT

4.7

Based on 316 reviews

When a situation in my life was causing severe hardship and I wasn't sure where to turn Goth & Company Ltd. was a saving grace! Barton Goth took the time to explain all of my options and provided clarity and honesty. He never once made me feel pressured to choose their services or made me feel like I was just "another customer" when I had some unusual circumstances his firm took the extra time to find the answers I needed. They made what was a VERY stressful time sensitive matter turn into a very easy and calm situation. I would never recommend using any other firm for these types of situations.

Christie B.

17:56 02 Mar 23

I have a very bad situation regarding my financials. Many years i tried to resolve that situation with no succsess at all. I`ve contacted several companies, individuals for help, but every time I had some reservations to not trust or believe them. I had personal contacts with two face to face but there was no conviction that I can be safe and everything will be OK. Years are passing, I`ve drown deeper and deeper. Praying wasn`t helpful.One day I saw advertise on FB about GOTH&Company. Suddenly lights were up in my had, "Let`s ask them" "Let`s try one more time" I said to myself. I contact them via E-Mail and response was so warm and promising. I continue folowing their instructions and meet first person in person at their site. Somehow I just start to trust. I was so lost in my life. Then I met another person there, then another, then another and I start feeling like I`m home with my family who is here to protect me and give me hope, strength and light to continue my life with hope for good. Now, after I follow their guidance and collect all info about my situation and me personaly, after they listen carefully, process of my freedom started to be reality. I am so confident that they will help anyone who need help this kind as I saw professionalism, honesty, selflessnes and pride what they are doing. Those people are very serious and so strong in their work to help others who are cornered and in agony as I was. I`m not anymore. I`m so calm, clear minded and hopeful, thanks to their work for me. Thank you GOTH&COMPANY for changing my life for good, forever. I wish you the best in your future business and connection with people. Sincerely, Just one of those simple man: Hasan Muratovic. Thank You.

Hasan M.

17:37 02 Mar 23

I called them after talking to other companies that were seemingly out for their own interests. They answered all my questions, were not judgmental, saved me thousands over the adds you see on FB companies. Made me feel like I might actually have hope of a better future. I would highly recommend them to anyone looking for advise on their debt solution options. Life changing.

amanda G.

15:46 02 Mar 23

I have nothing but good things to say about Goth & Company. Since the choice to trust our financial situation with Goth has begun, i have been relieved of unmentionable amount of stress. Trying to repay debts without any way to accomplish that task is a form of insanity. Such a relief to discover and relax with Goth's help.

Jewal B.

22:45 06 Feb 23

My experience with Goth & Company has been beyond amazing. I, thankfully, sought out a second opinion after initially seeing a trustee from another firm. I'm so grateful to have been led to Goth & Company, specifically Heather, Financial Administrator. I exited a very traumatic situation that led to my finances being damaged and I assure you I've been treated with the utmost professionalism, but also respect & compassion. I would have made a terrible mistake by signing with the initial trustee I saw at the other firm. Heather ensured to fully explore, explain and educate me about all of the options available and together we determined the best route to take. I feel I am on my journey of recovery as a whole but Goth & Company's entire team and efforts have made taking steps to clean up the financial piece a very positive experience. I give the entire team a 10. I feel incredibly grateful for the support, education, and implementation of my plan to move forward with my financial reparation process.Thank you so much, everyone, from Goth...especially Heather...Leah Lunger

Leah L.

16:11 06 Feb 23

I used Goth & Company previously & I found Mr. Goth to be highly knowledgeable, kind, caring, & friendly. He answered all of my questions that I had quickly. I wouldn't hesitate to use Goth & Company again in the future & give them high praise for the wonderful job that they do, during a stressful time that it can be.

Tom P.

17:06 03 Nov 22

I became a trustee for a family member and required insolvency consultation. Goth & Company was excellent at helping me navigate the debt load and was very professional in providing suggestion to move forward. I highly recommend this company for all insolvency issues whether it be for yourself, family member or friend!

Jackie R.

15:35 02 Nov 22

Goth & Company are professional, non judgemental, knowledgeable and very kind and courteous. I have used their services twice now and recommend them to anyone I know with Financial Hardships . I feel blessed to have come across them to help me work through my debts! All the staff there are awesome……From reception all the way to Trustee…..Hiy Hiy ( thank you in my Cree language) ……..Goth & Company

Teresa S.

11:03 09 Sep 22

Goth & Company Ltd. is what I am looking for. Their company has always been to help the clients the best way they can to get through their most difficult financial times. Their desire to put the client first has always been the priority, and if you want someone to help with your financial situation, please see Mr. Goth.

Francis R.

13:17 12 Aug 22

Goth & Company Ltd. helped me get back on track to financial freedom. They contact and deal with your debtors and come up with a plan for repayment that works for you. There is no judgment of you, no shame in seeking help to get your debts under control. Hey, life happens and sometimes you fall behind. Should it happen to you, Goth & Company are there to help you get back on track and get your life in order. Stop losing sleep at night worrying about your debt and give Goth & Company a call. You won't regret it, you have nothing to lose and only financial freedom to gain.

Parker C.

16:19 25 Jul 22

Excellent service !! Thank you for helping me with my financial debt /credit . It is not forever! I will find financial freedom within 5 years or sooner . To help me recover from this debt burden Goth Company will assist me with budgeting and financial debt/ credit counselling. Definitely a stress reducer! Very Grateful, Karen Rea

Bill R.

23:37 20 Jul 22

Jim and Bart of Goth and Company are the best! Professional, educated and compassionate in all their dealings. I have met them a number of times professionally and have the utmost respect for them and the work they do. I would never hesitate in recommending them to anyone looking for help with their debts.

Gerri N.

20:04 16 May 14

As a fellow Trustee, I can attest that Goth and Company is widely viewed as a leading firm in the personal insolvency market. I have known Barton Goth for several years and have collaborated with him on numerous matters. Barton has personally worked with me in helping individuals to complete their debt restructuring proceedings and successfully achieve a fresh start.

Blair M.

22:52 06 May 14

From time to time our firm needs to refer individuals to a Trustee in Bankruptcy in the Edmonton area and Goth & Company has been an excellent choice. A friendly voice answering the phone, combined with knowledgeable staff making themselves available to answer questions and schedule appointments leads to a great experience. We have always found their technical knowledge to be excellent and the feedback received from previous referrals is always positive. Thanks for your help Goth & Company.

Scott M.

16:46 05 May 14

I have been dealing with Barton Goth for over some time now and know him and his staff to be professional and experienced with insolvency issues. Their personal approach and commitment to providing one on one service is a credit to the Trustee community. Be it either a consumer proposal or a personal bankruptcy, I have no hesitation in recommending Baron and his team.

YRUInDebt

00:55 11 Apr 14

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Will This Clear My Credit Report?

A Consumer Proposal or Personal Bankruptcy Will Clear Up My Credit Report Myth or Fact? Several times a week I get calls from individuals (debtors) who believe that if they go through a consumer proposal or personal bankruptcy their debts will be removed from their...

How Often Do Consumer Proposals Get Rejected?

How Often Do Consumer Proposals Get Rejected? And What Happens If They Are? Consumer Proposals get accepted in our office “eventually” at a rate of 95% or better. This means a combination of acceptance by creditors votes by the initial vote 45 days from the...

How Often Do Consumer Proposals Get Accepted?

How Often Do Consumer Proposals Get Accepted? What Happens To Make Them Get Accepted? A consumer proposal offered to creditors has to be approved by a creditors' vote. A vote needs to achieve a majority in value (more than 50%) of creditors voting in favour of the...

Do I Have To Disclose All Of My Debts?

Do I Have To Disclose All Debts In A Consumer Proposal Or Bankruptcy? Why It Matters When a consumer proposal or bankruptcy starts there is immediate protection from the collection action of all unsecured creditors against the debtor. To get this protection, certain...

Can I Make A Consumer Proposal To My Creditors By Myself?

Can I Make A Consumer Proposal To My Creditors By Myself? No, you can’t. But let’s make sure we are both talking about the same thing. If you ask a Licensed Insolvency Trustee (“LIT”) what a consumer proposal is, the LIT will tell you that it is a specific process...

Frequently Asked Questions

Below are commonly asked questions about consumer proposals in Edmonton and in Alberta.

What debts can be included with a consumer proposal?

Credit cards
Bank loans
Tax debt
Payday loans
Student loans, in some cases

How do I know if I qualify?

A Licensed Insolvency Trustee can assess whether if you fall under the Federal requirements that must be met to file a consumer proposal.

Are you able to pay a portion of your debts?
Is the value of what you own greater than your debts?
Are your debts less than $250,000?
Are you able to afford monthly and lump sum payment(s)?

If so, a consumer proposal may be the most cost-effective debt solution for you.

Who can file a consumer proposal?

By law, consumer proposals must be filed by a Licensed Insolvency Trustee (LIT). Our knowledgeable administrating LITs will get all your questions answered and can start your proposal as early as your first appointment if that is what you want. We are here to answer all of your questions and walk you confidently through every step of the process.