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.

What is a Consumer Proposal?

Understand the basics of consumer proposals and how they work.

Consumer Proposals vs Bankruptcy

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

Consumer Proposals & Your Credit

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

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.

Free Consumer Proposal Consultation

Learn how a consumer proposal could work for you!

Free Professional Advice

Goth & Company are here to help. No cost. No obligation.

Client Reviews

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

Goth & Company Ltd. LIT
4.7
Based on 465 reviews
It was a great pleasure using the services,Goth & Company Ltd., they have helped me settled my debt, every step they have guide me through. I didn't imagine myself paying for the bad loans I have had thru the years. They have provided me with debt consultations and formal debt settlement solutions, they gave me time to understand what I am dealing with before presenting me options on how to consolidate and reduce my debts.Thank you very much..
amélie L.
1705756178
It really is a shame/tragedy what the governments of Canada/Alberta have done public policy wise to crush the individual economies of its citizens, however, I am grateful for the services of Goth & Company in these trying times for helping me address the situation professionally and accountably. Thank you for your help. Highly recommend this business in the Edmonton area and Northern Alberta.
Chris C.
1704844245
I had no trouble feeling taken care of even from the first phone conversation I had with a Goth trustee. They spent time outlining all of my options and determining which would be best for me. Every query received a thorough response. I had a great experience with Goth and company, and I wholeheartedly endorse them. Do not hesitate to call them.
Amelia N.
1704837660
Going through with Goth $ Company has been one of the best decisions I’ve made. I felt so overwhelmed with my debt and felt like it was gonna be forever to be able to get it under control.. but now I have a goal in place and I can finally have some peace of mind! I couldn’t have asked for better people. I highly recommend Goth and thank you so much to the individuals I dealt with.
Tetiana O.
1704828492
I filed a consumer proposal with Goth and Comp. and love that I was treated with respect and courtesy despite feeling embarrassed about my financial situation.The process is straight forward and after discussing my options, I was able to make a decision to go with a proposal to help with my debt.Signing is incredibly convenient and I was able to book my apt over zoom meetings.I appreciate the professionalism and knowledge of Goth and Company associates. Would highly recommend them.
K
1704819724
I felt they really understood where I came from. Goth & Company Ltd are helping me achieve my financial goals by educating me on budgeting and warning me of the pitfalls that cause so many financial problems for the individual. I never felt judged by them even though it was very humbling to have to come to them in the first place. And bonus, I could do my courses over the phone as I live 5 hours away. I highly recommend!
Shannon F.
1704810372
So far, so good explained everything haven’t had meeting of creditors yet . But they were fast and efficient in getting all the forms finished and explaining how it will work . I was also in the middle of moving and David was great at being able to contact me later that day when I didn’t budget enough time for the appointment .
Tiffany V.
1700385252
My trustee at Goth & Company went through all my debt relief options with me and told me the pros and cons of all of them including how much, based on my income, each option would cost me each month. They got my debt down from $58000 down to $12000, to be paid monthly over a 5 year period. So much pressure was taken off my shoulders. I highly recommend this company.
Judy F.
1700320786
I want to thank Bart and Kelly for aiding me in resolving my financial problems. They were understanding and very professional in guiding me through the various options available to relieve me of my financial burden. I thank you so much, that now I can go forward in life knowing that, with your guidance, I did everything possible and within my ability to satisfy my creditors.Thanks again.
John B.
1700057607
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
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.
1399416761
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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Recent Posts About Consumer Proposals

We continually publish new content based on questions and feedback from our clients and visitors.

Will This Clear My Credit Report?

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...

read more
How Often Do Consumer Proposals Get Rejected?

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...

read more
How Often Do Consumer Proposals Get Accepted?

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...

read more
Do I Have To Disclose All Of My Debts?

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...

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

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...

read more

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.