Canada Bankruptcy - a Proposal to Avoid Bankruptcy

Alternatives to Bankruptcy
Credit Repair
Debt Consolidation
Consumer Proposals
Debt Management
Dealing with CCRA

All About Bankruptcy
Danger Signals - What Are They?
Possible Solutions
Filing Bankruptcy or Making a Proposal
Debts Not Discharged
What is bankruptcy?
What is a Proposal?
FAQ about Bankruptcy
FAQ about Proposals
Exempt Assets - Will I Lose Everything?
My Spouse/Partner - How are They Affected?
Student Loans (Canada)
Credit Ratings
Rebuilding Credit
Opening a Bank Account
Secured Creditors
Income Tax Debt
Farmers in Financial Difficulty
Excerpts from the Bankruptcy and Insolvency Act
Who else can help?

What is a Proposal?

A proposal is a legal process which enables you to make an offer to your creditors to modify your payments or to pay them a percentage of what you owe. A proposal allows a fresh start without going bankrupt.

Briefly the steps are:

  • Choose a Trustee such as Alger & Associates Inc.

  • The Trustee will help you prepare a Statement of Affairs which lists all of your assets, creditors, income, expenses and other pertinent information.

  • Your finances will be reviewed and the Trustee will assist you in preparing a proposal to your creditors.

  • After you make your proposal, most creditors are no longer able to pursue you for collection of their accounts.

  • Public utilities may not discontinue service.

  • You make your payments to the Trustee who will pay your creditors until the terms of your proposal have been met.

  • You will be required to attend two financial counselling sessions.

  • Once you have met the terms of your proposal, you will receive a document stating that you completed your proposal and you will have no further obligation for the debts covered in your proposal.



This site provides free information about personal bankruptcy in Canada and personal bankruptcy alternatives in Canada, including answers to common personal bankruptcy questions.

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