What Is A Consumer Proposal?

A consumer proposal offers an alternative to bankruptcy. For example, an individual may ask the creditors to reduce the amounts owing to them or request more time to pay the amounts due. A consumer proposal must be made to all unsecured creditors, but does not affect the rights of secured creditors. The terms of the consumer proposal must be completed in five years and must offer the creditors at least what they would be paid in a bankruptcy. Consumer proposals are aimed at those individuals who do not have many debts or complicated financial affairs.