When it comes to consumer proposals, there is rarely a good reason for the discussion. Typically, they are a result of financial neglect that is now causing undue stress, confusion and anxiety for those seeking help. These situations can be troubling and difficult, but knowing where to turn can make all the difference in how they are eventually resolved.

In Canada, all bankruptcies and consumer proposals go through the same process. The process, in brief, follows these steps:

  • Contact a Licensed Insolvency Trustee (LIT)
  • Provide financial information and discuss your options
  • File a consumer proposal and negotiate with your debtors
  • Finalize consumer proposal and begin the payment process
  • Achieve financial freedom

As you can see, this process is easily divided into five simple steps. Below, we look at each step in more detail so that you can learn what to expect in these situations. With the help of Reynolds and Associates, you’ll be on your way to a successful consumer proposal in no time. Let’s get started.

The Process of Getting a Consumer Proposal

Consumer Proposal

Contacting a Licensed Insolvency Trustee

The first step that you will need to take when aiming for a consumer proposal is contacting your LIT. These are professionals with years of experience in the financial industry and certifications given at the federal level. These accolades help you have the peace of mind that they are acting towards your best interests and adhering to a stringent code of ethics.


Finding an LIT is as simple as searching their title along with the phrase “near me.” You can also visit the Office of the Superintendent of Bankruptcy’s website for more information, as they offer a convenient and straightforward lookup service. These are the best options for finding an LIT near your location.

Providing Financial Information

After you have made contact with your chosen financial professional, you will need to provide them with accurate and complete information about your finances. It is important to be honest and thorough with your information, as the more you share, the more your LIT can help you reduce your debt and aid in your financial recovery.

Filing Your Consumer Proposal

Once you’ve discussed your options with your LIT and chosen to file a consumer proposal, that is what will occur. Your interactions with your creditors will cease and be filtered through your LIT, and any interest on your debt will cease to accrue. You may have to negotiate with some creditors if they want more of a return on their investment or if they believe there is an issue that can be resolved.

Finalizing the Consumer Proposal

At the end of the process, all that is left to do is get the majority of your creditors to agree to the consumer proposal. Once this step is complete, you will begin the process of paying off the outstanding balance of your debt.

Achieving Financial Freedom

By paying down your debts and working closely with your LIT and creditors, you’ll be able to achieve financial freedom. This can feel amazing, especially with the added knowledge and guidance of financial literacy training.

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