Consumer Proposal Services in BC
Reduce your debts by up to 70% while keeping all your assets
Consumer proposals settle a portion of what you owe based on what you can afford. You retain everything you own, and receive immediate relief from collection calls. Goth and Company delivers federally regulated consumer proposal services in BC as Licensed Insolvency Trustees.
Trusted Consumer Proposal Services in British Columbia Since 1993
Successfully filing a consumer proposal in BC demands expertise you can depend on. Selecting the right Licensed Insolvency Trustee makes all the difference, especially for BC residents in volatile industries like forestry, mining, or technology.
Why choose Licensed Insolvency Trustees? Goth and Company is a Licensed Insolvency Trustee firm that follows the federal legal process established under the Bankruptcy and Insolvency Act. We’ve been incorporated since 1993 and currently serve BC residents through multiple economic cycles with government-regulated protection.
Goth and Company delivers instant creditor protection through federally regulated consumer proposals, helping British Columbia families keep their homes while eliminating overwhelming debt.
Consumer Proposal & Debt Relief Services in BC
Consumer proposals are the preferred alternative to bankruptcy for individuals who can manage to pay a portion of their debts.
When should you consider alternatives? If you have no income or prefer faster debt elimination, other options might be more suitable.
Goth and Company provides expert administration with a 99% acceptance rate for consumer proposals based on our office experience over decades of practice.
Consumer proposals reduce most unsecured debt by up to 70%. Once filed, creditors must deal directly with your Licensed Insolvency Trustee.
Debts Reduced by Consumer Proposals:
- Credit Card Debt (all major banks and credit unions)
- Income Tax Debt (Canada Revenue Agency)
- Bank Loans and Lines of Credit
- Payday Loans and Student Loans (7+ years)
- Phone Bills and Utility Bills
- Personal Loans and Collection Accounts
Can you include student loans in consumer proposals? Only if completed studies more than 7 years ago. Recent student loans survive consumer proposals.
Note: Secured debts like mortgages and car loans cannot be included but you maintain these through continued payments. Government fines, child support, and recent student loans are not extinguished.
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?
Who Should Consider Consumer Proposals in BC?
Consumer proposals work best for individuals who cannot afford to pay debts in full but have sufficient income to pay a portion over time. Top signs you should discuss consumer proposals:
- Cannot afford minimum payments on all debts simultaneously
- Have significant assets to protect (BC home, vehicles)
- Owe substantial tax debt to Canada Revenue Agency
- Want to avoid bankruptcy and its consequences
- Have steady income but overwhelming debt load
- Collection calls causing stress and affecting work
- Debt payments consuming a large portion of income
- Work in seasonal industries with variable income
Particularly effective for BC residents in forestry, mining, technology, and tourism who need structured debt reduction without career interference.
When Not Suitable and Common Mistakes to Avoid
Not suitable if you have no regular income, no assets to protect (bankruptcy faster), need immediate elimination (bankruptcy 9-21 months vs up to 5 years), or cannot commit to consistent payments.
Common mistakes people make with consumer proposals include unrealistic budgeting, not disclosing all debts, missing payments without communication, and not following through with counselling requirements.
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.
Important Considerations and Success Factors
Consumer proposals work best with steady income, desire to keep assets, and ability to commit to monthly payments over your chosen term. Success depends on realistic budgeting and commitment to completion.
While our acceptance rate reaches 99%, not everyone completes successfully, often due to changing circumstances like job loss or unrealistic initial budgeting. We create payment plans fitting your actual income and BC’s economic realities.
Why proposals get rejected and how to avoid it: Most rejections occur due to unrealistic payment offers or incomplete financial disclosure. Our experience helps avoid these common pitfalls.
Consumer Proposal Services Across British Columbia
Goth and Company provides consumer proposal help for Vancouver residents and throughout British Columbia. We serve residents in major BC communities through our virtual office network and local partnerships.
Our Licensed Insolvency Trustees assist clients seeking Fort St. John debt settlement solutions and other BC communities with the same expertise and federally regulated protection available across Canada.
Whether you’re located in the Lower Mainland, Interior BC, or Northern regions, our consumer proposal services adapt to local economic conditions and employment patterns affecting British Columbia residents. We understand BC’s unique industries including forestry, mining, technology, and tourism.
Get Your Free Consultation in British Columbia
Goth and Company has been incorporated since 1993 and currently serves thousands of Canadian residents seeking to overcome debt through consumer proposals. Our Licensed Insolvency Trustees understand BC’s unique challenges, from resource industry volatility to tourism seasonality affecting British Columbia families.
Goth and Company provides personalized debt solutions for BC residents combining decades of expertise with compassionate guidance for your specific BC situation. We serve all regions of British Columbia through virtual consultations and strategic partnerships.
Learn how a consumer proposal could work for you!
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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?
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 98% or better. This means a combination of acceptance by creditors votes by the initial vote 45 days from 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 British Columbia.
What Is a Consumer Proposal and How Long Do You Pay?
A consumer proposal is a court-sanctioned debt settlement process that allows you to negotiate with unsecured creditors while avoiding bankruptcy and keeping all assets.
The timeline involves: up to 5 years maximum, with most people selecting terms based on their budget and debt level. You typically offer creditors a reduced amount with immediate creditor protection and interest freezing.
Example: $35,000 debt with $200 monthly available could result in a proposal offering a portion of the total debt over several years with no interest. For $500/month we could address debts as high as $70k+. How quickly do creditors stop calling? Collection calls stop immediately upon filing – often within 24 hours.
Who Qualifies and What Happens to Your Credit?
The requirements include: owing less than $250,000* unsecured debt, unable to pay debts in full, sufficient income for monthly payments, Canadian resident. Works well for BC professionals and seasonal workers.
What happens to your credit rating immediately? You’ll receive an R7 rating (better than R9 for bankruptcy). This notation stays for either 6 years from filing or 3 years from completing the consumer proposal, whichever is sooner, but many clients see scores improve during the proposal as debts are being addressed.
Will your employer find out? Generally no, unless are subject to a garnishment in which case we have to advise your employer to stop the garnishment. Documentation needed may include: pay stubs, tax returns, asset/debt lists, budget, bank statements.
What Debts Are Included and What Assets Are Protected?
Can you include all credit cards? Yes! What assets are protected during consumer proposals? Unlike bankruptcy, consumer proposals let you keep all assets including your BC home, vehicles, RRSPs, investments.
Included debts: credit cards, bank loans, lines of credit, payday loans, income tax debt (CRA), student loans (7+ years), utility bills, phone bills, personal loans. Excluded: secured debts (mortgages, car loans), court fines, fraud debts, child support, recent student loans.
What happens to tax refunds? CRA may setoff a portion of your unfiled or next tax refunds, but you will start to receive tax refunds the year after you file. Monthly payments vary based on your income, expenses, and total debt amount.
Benefits and What If You Can’t Make a Payment?
What if you can’t make a payment one month? Contact your trustee immediately before missing payment. We can arrange temporary solutions or deferrals. Missing three payments automatically cancels your proposal.
The success rates for consumer proposals in our office reach 99% acceptance by creditors. Benefits: keep all assets, pay only a portion of what you owe, stop interest immediately, consolidate payments, immediate creditor protection, avoid bankruptcy.
Advantages over debt consolidation: debt reduction vs reorganization, legal protection, include tax debt, no good credit requirement, bind all creditors.
Risks, Job Loss, and What Are the Limitations?
Can you get out early if you get money? Yes! Pay off anytime without penalty, removing credit notation sooner. Many BC clients complete early using bonuses or raises.
What are the limitations of consumer proposals? Not suitable when you can’t afford any payments, debts mostly secured, need immediate elimination, or irregular income. What are the risks of consumer proposals? Automatic cancellation if missing three payments, or creditor rejection.
How do consumer proposals affect your employment? Generally no impact unless you work in finance or require security clearance. Most employers never learn about your consumer proposal.
Joint Debts and What Happens If Creditors Reject?
How do consumer proposals work with joint debts? Your proposal only eliminates your responsibility – the other person remains fully responsible for the entire debt amount.
What happens if creditors reject your proposal? We can amend terms, increase payments, or explore alternatives. Our 99% acceptance rate comes from understanding creditor expectations and realistic proposals.
How do consumer proposals affect your spouse? No direct impact on spouse’s credit unless they’re jointly responsible for debts. However, lenders may consider household income for future applications.
Credit Rebuilding and What Happens After Completion?
Can you get a mortgage after a consumer proposal? Yes, typically 1-2 years after completion with good credit rebuilding efforts. Start with secured credit cards, maintain employment stability, and save for down payments.
What happens after proposal completion? You receive a Certificate of Completion, credit notation begins removal timeline, and you can focus on building positive credit history without debt stress.
Timeline: document preparation takes time, then filing, 45-day voting period, then payments over chosen term. Marriage doesn’t affect obligations; divorce can be complex with joint debts.
Monthly Requirements and How to File
What are the monthly reporting requirements? Generally minimal compared to bankruptcy – mainly ensuring payments are made on time and notifying trustee of significant changes.
Process begins with free consultation assessing your situation and reviewing options. Steps: gather documentation, prepare proposal documents, file with creditors and government, begin 45-day voting period.
Your responsibilities: monthly payments, two counselling sessions, provide updates if requested, maintain trustee communication. Consultation to filing can be done quickly when urgent situations arise.