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Important Info on Consumer Proposals in Canada - Filing, Credit, Bankruptcy, Debt Relief Options & What to Watch Out For

One option you have to consolidate your debts is to file a Consumer Proposal. 
This is a legal process and a matter of public record under the Canada Bankruptcy and Insolvency Act. It is an agreement between yourself and your creditors to pay back part of what you owe. The amount you repay is, to a large extent, based on your income and what you own. Typically, this proposal will substantially decrease the amount of debt you will have to repay your creditors. A Consumer Proposal can only be put together and administered by a licensed bankruptcy trustee and costs around $1,500 to file. 
To be legally binding, the creditors who own the majority of your debt must agree to the proposal. Once they do, you then will repay the agreed amount over a maximum term of 5 years, and a permanent public record is placed in a searchable, online database. 
For the proposal to be complete and presented to your creditors. You will pay an initial setup fee for this service, and if the proposal is accepted by your creditors and approved by the courts, you begin making payments. For overseeing and managing your Consumer Proposal the trustee will take 20% of your future payments as a fee.