What is a Consumer Proposal?

Date: Nov 21, 2018
By: admin

November is Financial Literacy Month in Canada.  We thought you might like to know what keeps our Insolvency Team busy at Lazer Grant Inc.

In 1992 the Canadian bankruptcy law introduced a new way to deal with financial hardship.  A consumer proposal (CP) allows an individual to legally reduce the amounts one owes to creditors through the assistance of a Licensed Insolvency Trustee (LIT).  LIT’s are professionals, licensed by the Office of the Superintendent of Bankruptcy Canada (OSB).  Only an LIT can file a CP.

A CP cannot exceed a five-year term.  Payments are made to the LIT and the LIT distributes the funds net of OSB approved fees to the creditors.  A CP is better than bankruptcy in at least four ways:

  1. creditors are paid more,
  2. it doesn’t give as low a credit rating,
  3. assets aren’t automatically given up, and
  4. the LIT negotiates with creditors.

At Lazer Grant we strive to help people avoid bankruptcy and use a CP to solve debt problems.  About 95% of the people we meet can avoid bankruptcy and file a CP.  And the CPs we file have about a 99% acceptance rate by creditors.

For further details on CPs and how they can help you to be debt free, please contact our Insolvency Team (Janna Thomson, 204-977-3501,  We would be pleased to meet with anyone you know that could benefit from our expertise.

And remember, our initial consultation is always free.

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