{"id":58164,"date":"2026-05-19T15:08:55","date_gmt":"2026-05-19T19:08:55","guid":{"rendered":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/"},"modified":"2026-05-19T15:08:58","modified_gmt":"2026-05-19T19:08:58","slug":"an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada","status":"publish","type":"rbc_my_money_matter","link":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/","title":{"rendered":"What&#8217;s a Consumer Proposal in Canada? How it Works, Costs and Eligibility"},"content":{"rendered":"\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner\" style=\"border-radius:0x\">\n<div class=\"wp-block-rbc-rbc-block drop-shadow pos-rel top-line-blue block-wpr\">\n<div class=\"wp-block-rbc-rbc-block-inner-block block-inner\">\n<h4 class=\"wp-block-heading\" id=\"h-tldr\">TLDR<\/h4>\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\"><p>All consumer proposals are administered by a Licensed Insolvency Trustee regulated under federal law by the Canadian Government.<\/p><\/li>\n<li class=\"wp-block-rbc-list-item\"><p>The debt limit for filing a consumer proposal is up to $250,000 in unsecured personal debts (excluding mortgage).<\/p><\/li>\n<li class=\"wp-block-rbc-list-item\"><p>You can usually keep your assets (home, car, RRSPs, etc.) if you maintain payments.<\/p><\/li>\n<li class=\"wp-block-rbc-list-item\"><p>Repayment terms typically last from 3 to 5 years (a maximum of 60 months).<\/p><\/li>\n<li class=\"wp-block-rbc-list-item\"><p>Filing stops collection calls and legal action immediately.<\/p><\/li>\n<li class=\"wp-block-rbc-list-item\"><p>Appears on your credit reports as an R7 rating<\/p><\/li>\n<\/ul>\n<\/div><\/div><br>\n\n\n\n<p class=\"wp-block-paragraph\">A&nbsp;consumer proposal, in Canada,&nbsp;is a&nbsp;government-regulated debt solution that allows you&nbsp;to&nbsp;legally&nbsp;settle unsecured debts by repaying a&nbsp;portion&nbsp;of what you owe over time, with the help of a Licensed Insolvency Trustee (LIT). Consumer proposals are governed&nbsp;under the&nbsp;<a href=\"https:\/\/laws-lois.justice.gc.ca\/eng\/acts\/B-3\/\" target=\"_blank\" data-dig-id=\"LP-58164-376d4927\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Bankruptcy and Insolvency Act\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">Bankruptcy and Insolvency Act<\/a>&nbsp;and are often used as an alternative to bankruptcy, offering a&nbsp;way to reduce debt while typically keeping your assets.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This article guides you through&nbsp;how&nbsp;a consumer proposal&nbsp;works, how much it costs and who qualifies for one. It also discusses&nbsp;what happens after you complete one (\u2018discharge\u2019),&nbsp;how to avoid getting back in debt and ways to rebuild your credit.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-consumer-proposal\">What is a\u202fconsumer\u202fproposal?\u202f<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-definition\">Definition\u202f<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A consumer proposal is a&nbsp;formal, legally binding&nbsp;process that allows&nbsp;you to settle&nbsp;your&nbsp;unsecured&nbsp;debts&nbsp;with creditors&nbsp;by paying back a reduced amount over time.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-differences-between-a-consumer-proposal-and-bankruptcy\">Key differences\u202fbetween a consumer proposal and bankruptcy\u202f<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This table presents a high-level comparison of the key differences between a consumer proposal and bankruptcy.&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group has-text-reg-font-size is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<table class=\"table-swipe wp-block-rbc-responsive-table-block is-style-table-striped\"><thead><tr><th scope=\"col\"><\/th><th scope=\"col\"><strong>Consumer Proposal<\/strong>&nbsp;<\/th><th scope=\"col\"><strong>Bankruptcy<\/strong>&nbsp;<\/th><\/tr><\/thead><tbody><tr><td>What is it&nbsp;<\/td><td>Repay a&nbsp;portion&nbsp;of debt over time&nbsp;<\/td><td>Legal process to&nbsp;eliminate&nbsp;most debts&nbsp;<\/td><\/tr><tr><td>Assets&nbsp;<\/td><td>Usually keep assets&nbsp;<\/td><td>May need to surrender some assets&nbsp;<\/td><\/tr><tr><td>Payments&nbsp;<\/td><td>Fixed monthly payments&nbsp;<\/td><td>Based on income&nbsp;<\/td><\/tr><tr><td>Timeline&nbsp;<\/td><td>Up to 5 years\/60 months&nbsp;<\/td><td>Typically,&nbsp;9-21 months&nbsp;<\/td><\/tr><tr><td>Credit Impact&nbsp;<\/td><td>R7&nbsp;rating&nbsp;<\/td><td>R9 rating (more severe)&nbsp;<\/td><\/tr><\/tbody><\/table>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">For a more detailed&nbsp;analysis&nbsp;refer to the&nbsp;comparison chart featured in&nbsp;<em><a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/a-consumer-proposal-or-bankruptcy\/\" target=\"_blank\" data-dig-id=\"LP-58164-61989803\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"A Consumer Proposal or Bankruptcy?\" rel=\"noreferrer noopener\" class=\"rbc-link-format\">A Consumer Proposal or Bankruptcy?<\/a>&nbsp;<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-are-more-canadians-using-consumer-proposals\">Why\u202f are more Canadians using consumer proposals?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Consumer proposals are&nbsp;often preferred because they offer predictable payments,&nbsp;allow you to keep assets and typically&nbsp;have&nbsp;a less severe impact&nbsp;on your credit&nbsp;than bankruptcy.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-who-qualifies-for-a-consumer-proposal\">Who qualifies\u202ffor a\u202fconsumer\u202fproposal?\u202f<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You may qualify for a consumer proposal if:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">You owe between $1,000 and $250,000 in unsecured debt (excluding mortgage) <\/li>\n    <li class=\"wp-block-rbc-list-item\">You\u2019re unable to keep up with your debt repayments <\/li>\n    <li class=\"wp-block-rbc-list-item\">You are a resident of Canada or own property in Canada <\/li>\n    <li class=\"wp-block-rbc-list-item\">You work with a Licensed Insolvency Trustee <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-debts-that-can-cannot-be-included\">Debts that\u202fcan\/cannot be included\u202f<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In Canada, these are the debts that&nbsp;CAN&nbsp;be included in a consumer proposal:&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-unsecured-credit-debts\">1. Unsecured Credit Debts<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Credit card balances <\/li>\n    <li class=\"wp-block-rbc-list-item\">Lines of credit (unsecured) <\/li>\n    <li class=\"wp-block-rbc-list-item\">Store credit cards <\/li>\n    <li class=\"wp-block-rbc-list-item\">Overdraft balances <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-personal-loans\">2. Personal Loans<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Bank loans  <\/li>\n    <li class=\"wp-block-rbc-list-item\">Payday loans <\/li>\n    <li class=\"wp-block-rbc-list-item\">Personal lines of credit <\/li>\n    <li class=\"wp-block-rbc-list-item\">Loans from finance companies <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-government-debts\">3. Government Debts<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Canada Revenue agency (CRA) tax debts <\/li>\n    <li class=\"wp-block-rbc-list-item\">GST\/HST debts <\/li>\n    <li class=\"wp-block-rbc-list-item\">Income tax arrears <\/li>\n    <li class=\"wp-block-rbc-list-item\">CPP\/EI overpayments  <\/li>\n    <li class=\"wp-block-rbc-list-item\">CERB\/COVID benefit overpayments <\/li>\n    <li class=\"wp-block-rbc-list-item\">HST\/GST audit assessments <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-utility-and-service-bills\">4. Utility and Service Bills<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Unpaid utility bills (hydro, gas, water)  <\/li>\n    <li class=\"wp-block-rbc-list-item\">Unpaid phone, internet, cable bills <\/li>\n    <li class=\"wp-block-rbc-list-item\">Unpaid rent (past due amounts) <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-5-medical-and-professional-bills\">5. Medical and Professional Bills<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Unpaid utility bills (hydro, gas, water) <\/li>\n    <li class=\"wp-block-rbc-list-item\">Dental bills  <\/li>\n    <li class=\"wp-block-rbc-list-item\">Other healthcare provider bills <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-6-collection-agency-debts\">6. Collection Agency Debts<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Any of the above debts that have been sent to collections <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-7-business-debts-if-sole-proprietor\">7. Business Debts (if sole proprietor)<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Business credit cards <\/li>\n    <li class=\"wp-block-rbc-list-item\">Business loans <\/li>\n    <li class=\"wp-block-rbc-list-item\">Supplier debt <\/li>\n    <li class=\"wp-block-rbc-list-item\">Commercial leases  <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-8-co-signed-debts\">8. Co-signed Debts<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Debts you co-signed can be included in your proposal <\/li>\n    <li class=\"wp-block-rbc-list-item\">However, your co-signer remains fully liable <\/li>\n<\/ul><br>\n\n\n\n<p class=\"wp-block-paragraph\">In Canada, these are the debts that CANNOT be included in a consumer proposal:&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-secured-debts\">1. Secured Debts<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Mortgages and car loans (unless the creditor lets you surrender the asset) <\/li>\n    <li class=\"wp-block-rbc-list-item\">Any debt where collateral is pledged<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-student-loans\">2. Student Loans<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">If it&#8217;s been\u202f<strong>less than 7 years<\/strong>\u202fsince you ceased being a student (full-time or part-time) <\/li>\n    <li class=\"wp-block-rbc-list-item\">After 7 years, student loans can be included <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-3-court-ordered-debts\">3. Court-Ordered Debts<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Fines and penalties imposed by the court <\/li>\n    <li class=\"wp-block-rbc-list-item\">Restitution orders <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-4-family-support-obligations\">4. Family Support Obligations<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Spousal support (alimony) <\/li>\n    <li class=\"wp-block-rbc-list-item\">Child support payments<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-5-debts-from-fraud\">5. Debts from Fraud<\/h4>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Any debt obtained through fraudulent misrepresentation <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-6-undisclosed-debts\">6. Undisclosed Debts<\/h4>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-the-consumer-proposal-process-work\">How\u202fdoes\u202fthe\u202fconsumer proposal\u202fprocess\u202fwork?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A consumer proposal is a chance to settle&nbsp;your debts&nbsp;without losing your assets or filing for bankruptcy.&nbsp;This means you can usually&nbsp;keep your home and car, provided you can meet the monthly payment requirements.&nbsp;&nbsp;<br>&nbsp;<br>Although&nbsp;not broadly advertised, a&nbsp;consumer&nbsp;proposal&nbsp;becomes part of a&nbsp;public record&nbsp;maintained&nbsp;by the federal&nbsp;government.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-here-are-the-steps-for-filing-a-consumer-proposal-in-canada\">Here are the steps for filing a consumer proposal in Canada:<\/h3>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\"><strong>Step 1<\/strong>. Select a Licensed Insolvency Trustee: <\/li>\n    <li class=\"wp-block-rbc-list-item\"><strong>Step 2<\/strong>. Review your debts, income and options:  <\/li>\n    <li class=\"wp-block-rbc-list-item\"><strong>Step 3<\/strong>. Submit a proposal to creditors <\/li>\n    <li class=\"wp-block-rbc-list-item\"><strong>Step 4<\/strong>. File proposal, triggering a stay of proceedings (collections stop) <\/li>\n    <li class=\"wp-block-rbc-list-item\"><strong>Step 5<\/strong>. Creditors vote (within 45 days) <\/li>\n    <li class=\"wp-block-rbc-list-item\"><strong>Step 6<\/strong>. Begin fixed monthly payments <\/li>\n    <li class=\"wp-block-rbc-list-item\"><strong>Step 7<\/strong>. Attending 2 financial counselling sessions <\/li>\n    <li class=\"wp-block-rbc-list-item\"><strong>Step 8<\/strong>. Complete payments and receive discharge <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-happens-after-you-file\">What happens after you file?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Creditors&nbsp;have 45 days to accept your proposal or request changes. If they accept, payments begin&nbsp;immediately&nbsp;and you are protected from collection activity.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-happens-after-completion\">What happens after completion?\u202f<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once your proposal is fully paid, you will receive a certificate&nbsp;of completion&nbsp;confirming that&nbsp;you\u2019re&nbsp;legally released from all debts mentioned in the consumer proposal.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-much-does-a-consumer-proposal-cost\">How much does a consumer proposal cost?\u202f<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The cost of&nbsp;a consumer proposal is regulated by the federal government and built into your monthly payments, meaning you typically&nbsp;don\u2019t&nbsp;pay large upfront fees.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-fees-breakdown-filing-fees-counselling-fees-trustee-fees-included-in-payments\">Fees breakdown: filing fees, counselling fees, trustee\u202ffees\u202f(included in payments)\u202f<\/h3>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Filing fee: $105 <\/li>\n    <li class=\"wp-block-rbc-list-item\">Financial counselling fees: Two mandatory sessions at $85 per session ($170 total)  <\/li>\n    <li class=\"wp-block-rbc-list-item\">Administration fees (included in payments) <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-myth-no-large-upfront-payment-required\">Myth: No large upfront payment\u202frequired<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">While the cost of fees associated with&nbsp;consumer proposals&nbsp;may vary from one province or territory to another, consumer proposals do not have upfront fees&nbsp;as costs are incorporated into your repayment plan.\u202f&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-can-you-keep-your-house-or-car-in-a-consumer-proposal\">Can you keep your house or car in a consumer proposal?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In most cases, yes. Consumer proposals only apply to unsecured debts, meaning secured debts like mortgages and car loans are not included. You can also keep your home if you continue making mortgage payments.&nbsp;It is worth&nbsp;noting that equity in your&nbsp;home may affect your proposal terms.&nbsp;You can also keep your car if your loan payments are up to date.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-happens-if-you-come-into-money-during-the-term-of-the-proposal-e-g-a-bonus-or-inheritance\">What happens if you come into money during the term of the proposal (e.g.\u202fa bonus or inheritance)\u202f<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Most consumer proposals include a windfall provision requiring that you report any major windfalls&nbsp;or large financial gains&nbsp;(financial gifts, inheritance, etc.) you receive during the term of your consumer proposal. Common examples include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Inheritances <\/li>\n    <li class=\"wp-block-rbc-list-item\">Lottery or gambling winnings <\/li>\n    <li class=\"wp-block-rbc-list-item\">Legal settlements or insurance payouts <\/li>\n    <li class=\"wp-block-rbc-list-item\">Large tax refunds <\/li>\n    <li class=\"wp-block-rbc-list-item\">Significant bonuses or gifts <\/li>\n    <li class=\"wp-block-rbc-list-item\">Sale of assets <\/li>\n<\/ul><br>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on your agreement, this may affect your repayment terms.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-potential-issues-with-consumer-proposals\">Potential Issues\u202fwith Consumer Proposals\u202f<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are three potential downsides to consumer proposals that&nbsp;you should look out for:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">They can take up to five years to complete.  <\/li>\n    <li class=\"wp-block-rbc-list-item\">They can negatively impact your credit score <\/li>\n    <li class=\"wp-block-rbc-list-item\">They become a matter of public record in Canada, meaning it can be viewed by anyone who searches your credit report. This may impact your financial reputation <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-happens-if-creditors-reject-the-proposal\">What happens if creditors reject the proposal<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"h-what-happens-if-creditors-reject-the-proposal\">\u202fIf creditors reject your consumer proposal, you can work with your LIT to create&nbsp;a new proposal featuring better terms for your creditors&nbsp;or explore alternative debt solutions. Your creditors may propose a counteroffer with a modified proposal, which you can accept on the spot if you can manage the suggested repayment terms.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-happens-if-you-miss-payments\">What happens if you miss payments\u202f<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Missing three payments (or falling three months behind) can cause your proposal to be annulled, allowing creditors to&nbsp;take action to collect&nbsp;any outstanding money you owe them.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-happens-after-the-consumer-proposal-is-completed\">What happens after the\u202fconsumer proposal is completed?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once&nbsp;you\u2019ve&nbsp;completed your proposal, you can take steps to start rebuilding your credit.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-discharge-and-when-does-it-happen\">What is \u2018discharge\u2019 and when does it happen?\u202f<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once your negotiated debt has been paid in full,&nbsp;you\u2019ll&nbsp;get&nbsp;a certificate&nbsp;confirming that your consumer proposal is completed.&nbsp;You\u2019ll&nbsp;then be legally released or \u2018discharged\u2019 from all&nbsp;the&nbsp;debts&nbsp;included in your proposal.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-steps-to-rebuilding-credit-and-avoid-getting-back-into-debt\">Steps to rebuilding\u202fcredit\u202fand avoid getting back into debt<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Although your credit will suffer from&nbsp;submitting&nbsp;a consumer&nbsp;proposal,&nbsp;it will be significantly better than declaring bankruptcy. Also,&nbsp;there are several steps you can take to rebuild your credit.&nbsp;Start by creating a realistic budget&nbsp;that follows the 50\/30\/20 rule,&nbsp;leave some room for unexpected\/surprise expenses&nbsp;and&nbsp;adhere&nbsp;to the following:&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n    <li class=\"wp-block-rbc-list-item\">Pay all bills on time <\/li>\n    <li class=\"wp-block-rbc-list-item\">Stick to a budget  <\/li>\n    <li class=\"wp-block-rbc-list-item\">Monitor your credit regularly <\/li>\n    <li class=\"wp-block-rbc-list-item\">Consider a secured credit card or credit-builder loan  <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs\">FAQs\u202f<\/h2>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-accordion accordion\" id=\"&quot;accordionSet1\">\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-title47eeef79\" class=\"collapse-toggle collapsed\" data-target=\"#accordion47eeef79\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-58164-47eeef79\" aria-controls=\"accordion47eeef79\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"What is the maximum debt for a consumer proposal in Canada?\u202f\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>What is the maximum debt for a consumer proposal in Canada?\u202f<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordion47eeef79\" role=\"region\" aria-labelledby=\"accordion-title47eeef79\"><div class=\"collapse-inner\">\n<p class=\"wp-block-paragraph\">You can include&nbsp;up&nbsp;to $250,000 in unsecured debt (excluding your mortgage)\u202f&nbsp;<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-title2125ca3d\" class=\"collapse-toggle collapsed\" data-target=\"#accordion2125ca3d\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-58164-2125ca3d\" aria-controls=\"accordion2125ca3d\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"Can I keep my house in a consumer proposal?\u202f\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>Can I keep my house in a consumer proposal?\u202f<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordion2125ca3d\" role=\"region\" aria-labelledby=\"accordion-title2125ca3d\"><div class=\"collapse-inner\">\n<p class=\"wp-block-paragraph\">Yes, you&nbsp;can usually&nbsp;keep your home if&nbsp;you&nbsp;continue to&nbsp;meet the&nbsp;mortgage&nbsp;payment requirements.&nbsp;&nbsp;<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-titleca82459d\" class=\"collapse-toggle collapsed\" data-target=\"#accordionca82459d\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-58164-ca82459d\" aria-controls=\"accordionca82459d\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"How long does a consumer proposal stay on my credit report?\u202f\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>How long does a consumer proposal stay on my credit report?\u202f<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordionca82459d\" role=\"region\" aria-labelledby=\"accordion-titleca82459d\"><div class=\"collapse-inner\">\n<p class=\"wp-block-paragraph\">With Equifax, your consumer&nbsp;proposal&nbsp;will stay&nbsp;on&nbsp;your credit report for&nbsp;<strong>three years<\/strong>&nbsp;after&nbsp;completion. With TransUnion, your consumer&nbsp;proposal&nbsp;will remain&nbsp;on&nbsp;your credit report&nbsp;for&nbsp;three years from completion or six years from the date of filing, whichever comes first.&nbsp;<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-title4c4ab791\" class=\"collapse-toggle collapsed\" data-target=\"#accordion4c4ab791\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-58164-4c4ab791\" aria-controls=\"accordion4c4ab791\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"Can I file a consumer proposal more than once?\u202f\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>Can I file a consumer proposal more than once?\u202f<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordion4c4ab791\" role=\"region\" aria-labelledby=\"accordion-title4c4ab791\"><div class=\"collapse-inner\">\n<p class=\"wp-block-paragraph\">Yes,&nbsp;but each&nbsp;filing&nbsp;impacts&nbsp;your credit. While&nbsp;there\u2019s&nbsp;no limit to how often you can&nbsp;file a&nbsp;consumer&nbsp;proposal, you must complete or annul your first one before filing a second one.&nbsp;Each consumer&nbsp;proposal&nbsp;appears on your credit report separately, so multiple proposals could cumulatively damage your credit history.&nbsp;&nbsp;<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-titlec1ba2b85\" class=\"collapse-toggle collapsed\" data-target=\"#accordionc1ba2b85\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-58164-c1ba2b85\" aria-controls=\"accordionc1ba2b85\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"What happens to joint debts or co-signed debt?\u202f\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>What happens to joint debts or co-signed debt?\u202f<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordionc1ba2b85\" role=\"region\" aria-labelledby=\"accordion-titlec1ba2b85\"><div class=\"collapse-inner\">\n<p class=\"wp-block-paragraph\">In the case of joint debts, both debtors are equally and fully responsible. If your proposal offers to repay a portion of the debt, creditors will pursue your co-signer for the remaining balance.<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-collapsible-panel\"><div class=\"accordion-panel\"><button id=\"accordion-title5e3ef0f6\" class=\"collapse-toggle collapsed\" data-target=\"#accordion5e3ef0f6\" data-toggle=\"collapse\" data-parent=\"#accordionSet1\" aria-expanded=\"false\" data-dig-id=\"LP-58164-5e3ef0f6\" aria-controls=\"accordion5e3ef0f6\" data-dig-category=\"LP\" data-dig-action=\"collapsible closed\" data-dig-label=\"Is a consumer proposal better than bankruptcy?\" action-closed=\"collapsible closed\" action-opened=\"collapsible open\"><div>Is a consumer proposal better than bankruptcy?<\/div><\/button><div class=\"collapse-content collapse\" id=\"accordion5e3ef0f6\" role=\"region\" aria-labelledby=\"accordion-title5e3ef0f6\"><div class=\"collapse-inner\">\n<p class=\"wp-block-paragraph\">It depends on your situation. A&nbsp;consumer proposal may be a better fit if you have&nbsp;steady income and want to keep your assets, while bankruptcy may be&nbsp;an option&nbsp;if you cannot afford to repay your debts.&nbsp;<\/p>\n<\/div><\/div><\/div><\/div>\n<\/div>\n<\/div>\n<\/section>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div class=\"wp-block-rbc-rbc-default-collapsible\"><p><button class=\"collapse-toggle collapsed\" data-target=\"#collapse834a1009\" data-toggle=\"collapse\" aria-expanded=\"false\" aria-controls=\"collapse834a1009\" data-dig-id=\"LP-57738-834a1009\" data-dig-category=\"LP\" data-dig-action=\"accordion closed\" action-closed=\"accordion closed\" action-opened=\"accordion open\" data-dig-label=\"Things our lawyers want you to know\"><span>Things our lawyers want you to know<\/span><span>Things our lawyers want you to know<\/span><\/button><\/p><div class=\"collapse-content collapse\" id=\"collapse834a1009\">\n<div class=\"wp-block-rbc-collapsible-inner-block collapse-inner\">\n<p class=\"wp-block-paragraph\">This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.<\/p>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In Canada, a consumer proposal is a government-regulated debt solution that lets you repay a portion of what you owe over time.  Learn how it works, who qualifies, costs and how it compares to bankruptcy.\u202f <\/p>\n","protected":false},"author":10,"featured_media":71852,"parent":57282,"menu_order":0,"template":"wp-custom-template-mmm-sticky-nav","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"tags":[520],"rbc_content_type":[31],"rbc_audience":[110],"rbc_lob_group":[35],"rbc_difficulty_level":[33],"rbc_mmm_category":[309,335,302],"class_list":["post-58164","rbc_my_money_matter","type-rbc_my_money_matter","status-publish","has-post-thumbnail","hentry","tag-managing-money","rbc_content_type-article","rbc_audience-business-owners","rbc_lob_group-business","rbc_difficulty_level-beginner","rbc_mmm_category-bankruptcy","rbc_mmm_category-consumer-proposals","rbc_mmm_category-debt-stress-relief"],"acf":{"contently_publication_id":"361060","custom_author":"Amanda Reaume","rbc_video_header":"","rbc_media_duration":"","rbc_video_keywords":"","rbc_video_description":"","rbc_video_upload_date":"","rbc_toc_for_mmm_tag":"h2","rbc_toc_for_mmm_limit":6,"rbc_toc_for_mmm":[{"title":"What is a\u202fconsumer\u202fproposal?\u202f","url":"#h-what-is-a-consumer-proposal"},{"title":"How\u202fdoes\u202fthe\u202fconsumer proposal\u202fprocess\u202fwork?","url":"#h-how-does-the-consumer-proposal-process-work"},{"title":"How much does a consumer proposal cost?\u202f","url":"#h-how-much-does-a-consumer-proposal-cost"},{"title":"Can you keep your house or car in a consumer proposal?","url":"#h-can-you-keep-your-house-or-car-in-a-consumer-proposal"},{"title":"What happens if you come into money during the term of the proposal (e.g.\u202fa bonus or inheritance)\u202f","url":"#h-what-happens-if-you-come-into-money-during-the-term-of-the-proposal-e-g-a-bonus-or-inheritance"},{"title":"Potential Issues\u202fwith Consumer Proposals\u202f","url":"#h-potential-issues-with-consumer-proposals"}],"rbc_toc_for_mmm_action":"Generate Table Of Contents"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<meta name=\"description\" content=\"In Canada, a consumer proposal is a government-regulated debt solution that lets you repay a portion of what you owe over time. Learn how it works, who qualifies, costs and how it compares to bankruptcy.\u202f\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:description\" content=\"In Canada, a consumer proposal is a government-regulated debt solution that lets you repay a portion of what you owe over time. Learn how it works, who qualifies, costs and how it compares to bankruptcy.\u202f\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/\" \/>\n<meta property=\"og:site_name\" content=\"RBC Royal Bank\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-19T19:08:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80\" \/>\n\t<meta property=\"og:image:width\" content=\"930\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/\"},\"author\":{\"name\":\"RBC\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/#\\\/schema\\\/person\\\/565fe74483a298c05d1be363c890c7b0\"},\"headline\":\"What&#8217;s a Consumer Proposal in Canada? How it Works, Costs and Eligibility\",\"datePublished\":\"2026-05-19T19:08:55+00:00\",\"dateModified\":\"2026-05-19T19:08:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/\"},\"wordCount\":1852,\"image\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2023\\\/09\\\/Untitled-design-2023-07-20T105927.651.jpg?quality=80\",\"keywords\":[\"Managing Money\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/\",\"url\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/\",\"name\":\"What is a Consumer Proposal in Canada? | RBC My Money Matters\u202f\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2023\\\/09\\\/Untitled-design-2023-07-20T105927.651.jpg?quality=80\",\"datePublished\":\"2026-05-19T19:08:55+00:00\",\"dateModified\":\"2026-05-19T19:08:58+00:00\",\"description\":\"In Canada, a consumer proposal is a government-regulated debt solution that lets you repay a portion of what you owe over time. Learn how it works, who qualifies, costs and how it compares to bankruptcy.\u202f\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2023\\\/09\\\/Untitled-design-2023-07-20T105927.651.jpg?quality=80\",\"contentUrl\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2023\\\/09\\\/Untitled-design-2023-07-20T105927.651.jpg?quality=80\",\"width\":930,\"height\":620,\"caption\":\"Burning candle on table in darkness\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"My Money Matters\",\"item\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Debt and Stress Relief\",\"item\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Bankruptcy\",\"item\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Consumer Proposals\",\"item\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/\"},{\"@type\":\"ListItem\",\"position\":5,\"name\":\"What&#8217;s a Consumer Proposal in Canada? How it Works, Costs and Eligibility\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/#website\",\"url\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/\",\"name\":\"RBC Royal Bank\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/#\\\/schema\\\/person\\\/565fe74483a298c05d1be363c890c7b0\",\"name\":\"RBC\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/ebd3d2d89d929986d9e254569349587e0ae3dda4934d4b7c91e93fd550e72532?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/ebd3d2d89d929986d9e254569349587e0ae3dda4934d4b7c91e93fd550e72532?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/ebd3d2d89d929986d9e254569349587e0ae3dda4934d4b7c91e93fd550e72532?s=96&d=mm&r=g\",\"caption\":\"RBC\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"description":"In Canada, a consumer proposal is a government-regulated debt solution that lets you repay a portion of what you owe over time. Learn how it works, who qualifies, costs and how it compares to bankruptcy.\u202f","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/","og_locale":"en_US","og_type":"article","og_description":"In Canada, a consumer proposal is a government-regulated debt solution that lets you repay a portion of what you owe over time. Learn how it works, who qualifies, costs and how it compares to bankruptcy.\u202f","og_url":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/","og_site_name":"RBC Royal Bank","article_modified_time":"2026-05-19T19:08:58+00:00","og_image":[{"width":930,"height":620,"url":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/#article","isPartOf":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/"},"author":{"name":"RBC","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/#\/schema\/person\/565fe74483a298c05d1be363c890c7b0"},"headline":"What&#8217;s a Consumer Proposal in Canada? How it Works, Costs and Eligibility","datePublished":"2026-05-19T19:08:55+00:00","dateModified":"2026-05-19T19:08:58+00:00","mainEntityOfPage":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/"},"wordCount":1852,"image":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/#primaryimage"},"thumbnailUrl":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80","keywords":["Managing Money"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/","url":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/","name":"What is a Consumer Proposal in Canada? | RBC My Money Matters\u202f","isPartOf":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/#primaryimage"},"image":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/#primaryimage"},"thumbnailUrl":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80","datePublished":"2026-05-19T19:08:55+00:00","dateModified":"2026-05-19T19:08:58+00:00","description":"In Canada, a consumer proposal is a government-regulated debt solution that lets you repay a portion of what you owe over time. Learn how it works, who qualifies, costs and how it compares to bankruptcy.\u202f","breadcrumb":{"@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/#primaryimage","url":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80","contentUrl":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80","width":930,"height":620,"caption":"Burning candle on table in darkness"},{"@type":"BreadcrumbList","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"My Money Matters","item":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/"},{"@type":"ListItem","position":2,"name":"Debt and Stress Relief","item":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/"},{"@type":"ListItem","position":3,"name":"Bankruptcy","item":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/"},{"@type":"ListItem","position":4,"name":"Consumer Proposals","item":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/"},{"@type":"ListItem","position":5,"name":"What&#8217;s a Consumer Proposal in Canada? How it Works, Costs and Eligibility"}]},{"@type":"WebSite","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/#website","url":"https:\/\/www.rbcroyalbank.com\/en-ca\/","name":"RBC Royal Bank","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.rbcroyalbank.com\/en-ca\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.rbcroyalbank.com\/en-ca\/#\/schema\/person\/565fe74483a298c05d1be363c890c7b0","name":"RBC","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/ebd3d2d89d929986d9e254569349587e0ae3dda4934d4b7c91e93fd550e72532?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/ebd3d2d89d929986d9e254569349587e0ae3dda4934d4b7c91e93fd550e72532?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ebd3d2d89d929986d9e254569349587e0ae3dda4934d4b7c91e93fd550e72532?s=96&d=mm&r=g","caption":"RBC"}}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"What&#8217;s a Consumer Proposal in Canada? How it Works, Costs and Eligibility","url":"http:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/debt-and-stress-relief\/bankruptcy\/consumer-proposals\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\/"},"thumbnailUrl":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80&w=150&h=150&crop=1","image":{"@type":"ImageObject","url":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80"},"articleSection":"Uncategorized","author":[{"@type":"Person","name":"RBC"}],"creator":["RBC"],"publisher":{"@type":"Organization","name":"RBC Royal Bank","logo":""},"keywords":["managing money"],"dateCreated":"2026-05-19T19:08:55Z","datePublished":"2026-05-19T19:08:55Z","dateModified":"2026-05-19T19:08:58Z"},"rendered":"<script type=\"application\/ld+json\" class=\"wp-parsely-metadata\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"What&#8217;s a Consumer Proposal in Canada? How it Works, Costs and Eligibility\",\"url\":\"http:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/my-money-matters\\\/debt-and-stress-relief\\\/bankruptcy\\\/consumer-proposals\\\/an-alternative-to-bankruptcy-understanding-the-consumer-proposal-process-in-canada\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2023\\\/09\\\/Untitled-design-2023-07-20T105927.651.jpg?quality=80&w=150&h=150&crop=1\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/www.rbcroyalbank.com\\\/en-ca\\\/wp-content\\\/uploads\\\/sites\\\/12\\\/2023\\\/09\\\/Untitled-design-2023-07-20T105927.651.jpg?quality=80\"},\"articleSection\":\"Uncategorized\",\"author\":[{\"@type\":\"Person\",\"name\":\"RBC\"}],\"creator\":[\"RBC\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"RBC Royal Bank\",\"logo\":\"\"},\"keywords\":[\"managing money\"],\"dateCreated\":\"2026-05-19T19:08:55Z\",\"datePublished\":\"2026-05-19T19:08:55Z\",\"dateModified\":\"2026-05-19T19:08:58Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/rbcroyalbank.com\/p.js"},"featured_img":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-content\/uploads\/sites\/12\/2023\/09\/Untitled-design-2023-07-20T105927.651.jpg?quality=80&w=930","coauthors":[],"author_meta":{"author_link":"https:\/\/www.rbcroyalbank.com\/en-ca\/author\/fclaussen\/","display_name":"RBC"},"relative_dates":{"created":"Posted 3 weeks ago","modified":"Updated 3 weeks ago"},"absolute_dates":{"created":"Posted on May 19, 2026","modified":"Updated on May 19, 2026"},"absolute_dates_time":{"created":"Posted on May 19, 2026 3:08 pm","modified":"Updated on May 19, 2026 3:08 pm"},"featured_img_caption":"","tax_additional":{"post_tag":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/topic\/managing-money\/\" class=\"advgb-post-tax-term\">Managing Money<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Managing Money<\/span>"],"slug":"post_tag","name":"Tags"},"rbc_content_type":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/content-type\/article\/\" class=\"advgb-post-tax-term\">Article<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Article<\/span>"],"slug":"rbc_content_type","name":"Content Types"},"rbc_audience":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/audience\/business-owners\/\" class=\"advgb-post-tax-term\">Business Owners<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Business Owners<\/span>"],"slug":"rbc_audience","name":"Audiences"},"rbc_lob_group":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/lob-group\/business\/\" class=\"advgb-post-tax-term\">Business<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Business<\/span>"],"slug":"rbc_lob_group","name":"LOB Groups"},"rbc_difficulty_level":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/difficulty-level\/beginner\/\" class=\"advgb-post-tax-term\">Beginner<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Beginner<\/span>"],"slug":"rbc_difficulty_level","name":"Difficulty Levels"},"rbc_mmm_category":{"linked":["<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/mmm-category\/bankruptcy\/\" class=\"advgb-post-tax-term\">Bankruptcy<\/a>","<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/mmm-category\/consumer-proposals\/\" class=\"advgb-post-tax-term\">Consumer Proposals<\/a>","<a href=\"https:\/\/www.rbcroyalbank.com\/en-ca\/mmm-category\/debt-stress-relief\/\" class=\"advgb-post-tax-term\">Debt and Stress Relief<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Bankruptcy<\/span>","<span class=\"advgb-post-tax-term\">Consumer Proposals<\/span>","<span class=\"advgb-post-tax-term\">Debt and Stress Relief<\/span>"],"slug":"rbc_mmm_category","name":"Categories"},"ep_custom_result":{"linked":[],"unlinked":[],"slug":"ep_custom_result","name":"Custom Results"}},"series_order":"","jetpack_sharing_enabled":true,"primary_tag":"520","primary_rbc_mmm_category":"335","_links":{"self":[{"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter\/58164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter"}],"about":[{"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/types\/rbc_my_money_matter"}],"author":[{"embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/users\/10"}],"version-history":[{"count":8,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter\/58164\/revisions"}],"predecessor-version":[{"id":97953,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter\/58164\/revisions\/97953"}],"up":[{"embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_my_money_matter\/57282"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/media\/71852"}],"wp:attachment":[{"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/media?parent=58164"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/tags?post=58164"},{"taxonomy":"rbc_content_type","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_content_type?post=58164"},{"taxonomy":"rbc_audience","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_audience?post=58164"},{"taxonomy":"rbc_lob_group","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_lob_group?post=58164"},{"taxonomy":"rbc_difficulty_level","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_difficulty_level?post=58164"},{"taxonomy":"rbc_mmm_category","embeddable":true,"href":"https:\/\/www.rbcroyalbank.com\/en-ca\/wp-json\/wp\/v2\/rbc_mmm_category?post=58164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}