Consumer Proposals
A consumer proposal could be your path to peace of mind
Lower your debt, keep your assets, & stop collection calls for good.
Overwhelmed by debt? A consumer proposal may be the solution you’ve been searching for. Our Licensed Insolvency Trustees help individuals just like you reduce their debt by up to 80% without declaring bankruptcy with a strategic consumer proposal.
We’re a local, family-run firm that’s helped thousands of people in Ottawa and surrounding areas regain financial control.
How does a Consumer Proposal work?
A Consumer Proposal is a government-approved debt solution that helps you regain control without declaring bankruptcy. It’s a legally binding agreement between you and your creditors that allows you to:
- Combine your unsecured debts into one manageable monthly payment
- Stop interest from growing and put an end to collection calls and wage garnishments
- Avoid bankruptcy while keeping your home, car, and retirement savings
Once filed, all collection calls and legal action must stop, giving you immediate protection and peace of mind. You can structure your proposal as:
- Monthly payments (up to 60 months)
- A lump-sum offer
- Or a combination of both—whatever works best for you and your creditors
Is a Consumer Proposal Right for Me?
A consumer proposal is not for everyone, and we will always be honest with you about that. Here is how to know if it could be the right fit for your situation.
You might be a good candidate if:
You are working and earning an income, but your debt has become impossible to manage. Maybe you are only making minimum payments each month, using one credit card to pay another, or lying awake at night worrying about money. Perhaps collectors are calling or you are afraid to answer your phone.
If any of this sounds familiar, a consumer proposal could be exactly what you need.
- Your debt is significant – up to $250,000
- You have a steady income but cannot keep up with your payments
- You want to keep your home, car and retirement savings
- You want to avoid bankruptcy
- You are dealing with credit card debt, personal loans, payday loans or tax debt
- Your debt is primarily a mortgage or other secured debt
- Your income is too low to support any monthly payment
- You owe more than $250,000 outside of any debt secured by your principal residence
If that sounds like your situation, bankruptcy may be a better option and we can walk you through that too — honestly and without pressure.
Not sure where you stand?
That is exactly what our free consultation is for. In one short call we will review your situation, answer your questions and tell you honestly whether a consumer proposal makes sense for you. No pressure and no obligation.
Book your free, no obligation consultation today. We are friendly, judgement free and here to help.
Is a consumer proposal a legal process?
Yes. A consumer proposal is a federally regulated legal process governed by the Bankruptcy and Insolvency Act of Canada. Once filed and if approved, it is legally binding on your creditors. Collection calls must stop immediately, and no creditor can take legal action against you while your proposal is in place. Upon satisfaction of the terms, your responsibility towards eligible debt will be extinguished. It is one of the most powerful debt relief tools available to Canadians. During your free assessment, the LIT will address the treatment of your debt according to your unique situation.
Who is allowed to file a consumer proposal?
Only a Licensed Insolvency Trustee (LIT) can legally file a consumer proposal on your behalf. LITs are licensed and regulated by the federal government through the Office of the Superintendent of Bankruptcy Canada. Be cautious of debt consultants or companies that claim to offer consumer proposals. If they are not a Licensed Insolvency Trustee, they cannot legally file one. At Lazard, our firm is fully licensed and have been serving Ottawa families for over 25 years.
How is a consumer proposal different from debt consolidation?
Debt consolidation combines your debts into one new loan, and you still pay back everything you owe, plus interest. A consumer proposal is fundamentally different. You negotiate to pay back what you can afford, which is oftentimes only a portion of what you owe, interest stops completely the day you file, and your creditors are legally bound by the terms should your proposal be accepted. For many people it means paying back significantly less with no new loan required.
Will a consumer proposal affect my credit?
Yes, a consumer proposal does affect your credit. In Ontario, it is recorded as an R9 rating on your credit report while you are in the proposal, and you graduate to an R7 rating upon its completion for up to three years afterwards, or six years from filing, whichever comes first. However, for most people already struggling with debt, their credit has already been impacted. The good news is that a consumer proposal gives you a clear path to rebuilding.
What happens if my creditors say no?
Your creditors have 45 days to vote on your proposal. If creditors holding the majority of your unsecured debt accept it, the proposal is legally binding on all creditors, including those who voted against it. If your offer is rejected, your trustee can help you revise and resubmit it, or explore other options with you. In our experience, it is very rare for a proposal to be outright rejected, as there is usually a mutual resolution to be had.
How much does a consumer proposal cost?
There is no upfront cost to file a consumer proposal. Your trustee’s fees are built into the monthly payments you negotiate as part of the proposal itself and are regulated by the federal government. This means you will never receive a surprise bill and there is nothing extra to pay on top of your agreed-upon payments. At Lazard, your first consultation is completely free with no obligation, so you can get honest answers about your situation before committing to anything.
Why Choose Lazard?
With more than 30 years experience in insolvency and over 25 years in business, we promise to be by your side every step of the way. Giving you the help you need to better your financial situation is what we do best, and we bring that to the table every day.
Licensed Insolvency Trustees (LITs)
Licensed Insolvency Trustees are the only professionals legally authorized to file consumer proposals in Canada.
Local and Family-Owned
Proudly serving Ottawa, Kingston, Cornwall, and beyond since 1999.
Free, No-obligation Consultation
Speak directly with a bilingual trustee, not a call centre. Remote and in-person consultations available.
Tailored Debt Solutions
Every proposal is customized for your unique situation. We take all of your circumstances into account.
Real People. Real Results.
Read our Google Reviews to see what our happy clients are saying.
Fantastic company to work with. Very flexible, non judgmental and all staff are pleasant and understanding. Head and shoulders above all the big names I approached at the beginning of this process. I highly recommend their services.
– Satisfied Client
Take Action Now
You don’t need to face this alone. Our team is here to help you explore your options and take the first step toward financial freedom.
Book your free, no-obligation, confidential consultation. Consultations can be fully remote or in-person, in English or French.
You can also book an appointment by calling us at 613-567-4357 (HELP)
We're here to help
We want to take the fear out of dealing with your debt. Dealing with creditors can feel like a daunting task, we help you negotiate payments that you can afford without losing your assets or your dignity.
With more than 30 years experience in insolvency and over 25 years in business, we promise to be by your side every step of the way. Giving you the help you need to better your financial situation is what we do best, and we bring that to the table every day.