Consumer proposals and Credit Scores

Jack B. Maya

New Forum Member
I am thinking about consumer proposal. My current financial situation is bad. I am not able to keep up with my loan payments and credit card debts. I only knew about bankruptcy earlier. I did an internet research and found out that there is an another option where I can keep all my assets. Currently, I have two properties and selling one will get me some money. Which will be about 30-40% of my total debt. here is where I have a few doubts. How much will have to pay if I file a consumer proposal? Can I pay off the amount earlier than the given time period? Will file a consumer proposal affect my credit score? Also please suggest someone in Mississauga who can help me file a consumer proposal.


Senior Forum Member
REIN Member
If it were me in your situation, I would do anything and everything to avoid either scenario. I would also seek credit counselling immediately, and create a work around if possible as you will bounce back much quicker than bankruptcy or a consumer proposal. I would sell both properties immediately, and try to consolidate the rest the best you can as the latter options are a last resort. To me a consumer proposal seems expensive and there is no guarantee your creditors will accept it.

Thomas Beyer

Senior Forum Member
REIN Member
As a real estate investor capital AND ACCESS TO CAPITAL is critical as it is a very capital intensive business. You go bankrupt and your real estate career is over in Canada for at least 7 - 10 years.

As such selling assets, even at a loss, to pay debt is the right path here !


Mortgage Associate & REIA
REIN Member
Hi Jack
It sounds like you have equity in your properties that may be accessible to consolidate your debts into a smaller payment. As a mortgage broker I have successfully assisted people in your situation by being able to negotiate their debts for payout so they may avoid bankruptcy or worse yet a consumer proposal.

To discuss further email me at and we can arrange a time to discuss.

Keith Uthe
Enrich Mortgage Group

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Real Estate Maven
REIN Member
Consumer proposals can be even worse than bankruptcies as they normally last more than a year and both proposals and bankruptcies take the same time to drop off your report. So in that sense, a bankruptcy is better.

Furthermore, consumer proposals and consolidation loans aren't as heavily regulated as bankruptcies, and there are several predatory companies out there that seem legit at a glance.

Someone close to me lost everything because her consolidation loan was a scam. She paid more than twice what she should have paid and there was nothing she could do about it.

Check to see if there is a credit counselling organization sponsored by your province (such as Money Mentors in Alberta). They are usually a good bet and have several possible options.


Mortgage Associate & REIA
REIN Member
With any consumer proposal company you work with ask them how they get paid or make their money. Money mentors and companies like them are paid by the creditors they are negotiating with. The more you end up paying the more they make.

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