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 584 reviews

For a very long time I had been on edge because of a 'charitable giving' tax shelter I had participated in many years earlier . The tax court had finally ruled against the beneficiaries of this shelter and I was now on the hook for most of my original donation plus interest dating back 20 years .I was ' climbing the walls' waiting for the day CRA would scoop my bank account .But , Goth pulled away the clouds of doom and presented me with a well explained , greatly reduced 5 year payment plan that CRA accepted.Until this thing with Goth was behind me , I did not realize how it was affecting everything in my life . I sleep better , I smile more and people ask "do you have a girl friend ". I am a bit of a recluse.And since this proposal was enacted , Goth has been so helpful in promptly answering any questions I might have.

Terry

1721014010

The time, kindness, knowledgeable staff of this wonderful company helped our household when in a small bind.Each staff member was understanding, and treated us like we mattered/family; as well as clients.No better place to go to than this company for anything they offer.Made everything very simple, and put lots of anxiety at ease starting from the very 1st appointment.Thank you from the Hall & Grayson families.

Jenna G.

1718320471

I got in touch with Goth and Company a few weeks ago and I am happy that I did. .They are very informative and awesome people to talk with ..Everything is explained very well and any questions that you asked are answered...I can honestly say they have helped me great with this process. .So I advise people that if you are having financial problems please give Goth and Company a call. You will not be disappointed.. Thank you for the help you have given me.

Linda D.

1718305302

Omg! I’m finally feeling like I can relax. The last couple of months, have been extremely stressful and overwhelming. I left Real Estate in November .. but the CRA estimated my HST. And demanded I pay installments .. but wanted huge payments. That I couldn’t pay.So I decided to do a Consumer Proposal. Goth, explained everything to me & took care of everything and really took the stress out of my life.

Jackie W.

1717537020

The last couple of years, I had been going through some personal difficulties that put me in a place where I had no room to breathe financially. I felt like I was running around in circles paying left and right and was still not catching up. Until one day I realized, I can’t make all these payments next month. When I saw that I was in real trouble, I contacted Zach from 4 Pillars and was referred to Goth & Company Ltd. An appointment was made and I met with, David Mazerolle. I was anxious, I would have to tell what had happened that got me to the point of not being able to pay. The trustee put me at ease explaining everything. He went through every single step and how everything works. Before signing, went through all the calculations and how much my monthly payment would be. Having said all of this, if you are struggling, please know that there is help. Knowing what I know now, I encourage anyone experiencing a similar financial distress to contact Goth & Company Ltd. There is no risk, you will not be judged.

Caro M

1717531561

When dealing with a personal, and sensitive issue such as your finances, you seek a process that smooth and easy. You also seek people that are knowledgeable and kind towards you and your situation. These are all qualities that this company offers. Looking forward to continuing to build my relationship with this company, as I work towards financial freedom and success!

Claire

1717526718

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.

1400270663

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.

1399308374

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

1397177705

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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.