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
4.6
Based on 294 reviews
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
After completing my first finance session with Amanda, I really feel I have started on the road to financial recovery. To this point everyone I've dealt with from Barton Goth have been very professional and very informative as to what I need to expect moving forward with this process. The stress relief is massive and I can finally see a way out of my financial crisis. I look forward to completing this process and finishing my sessions to learn tactics to avoid this situation from becoming reality in the future.
Tony M.
17:31 19 Jul 22
What a wonderful caring experienced group of people working for this company.Gave me all the information needed in a non judgmental way and guided me through the process like they actually cared about what I was going through.The people from this Company that helped me were soft spoken and actually listened to what my concerns were and replied to them with guidance that put my mind at ease and helped me move forward with this stressful for me process.Outstanding ! Would highly without reservation recommend this company.
Brent A.
15:21 19 Jul 22
The people at Goth & Company have made a huge difference in my financial life. They were professional, quick, efficient and easy to work with. I appreciate that all documentation and arrangements were handled online so that there weren't any healthc concerns. And they were concluded efficiently ithout any issues. If you have need of financial or legal services, then Goth & Company is the place to look.
The House of R.
02:08 07 Jun 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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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.