Consumer Proposals help you settle your unsecured debt through a legal process, so you can have a clean slate to begin again. Interest stops accruing on the money owed, and you can make arrangements with creditors to reduce your monthly payments or increase the payment period. Creditor-accepted proposals allow you to avoid bankruptcy and keep your assets while getting the same protection from your creditors that you would receive in a bankruptcy.

Unlike with debt settlement companies or informal arrangements, a proposal approved by the majority of creditors is binding on all creditors  — even the ones who vote against the proposal or opt out of participating in the process. Proposals also offer more dividends to creditors than bankruptcy, so there is an incentive for creditors to vote for this solution. In the end, your debts will be legally written off — subject to some restrictions — and you can start fresh.


Orderly Payment of Debts is another option to help manage your debts. This program is perfect for people who can still afford to pay their debts in full, but are having trouble managing their finances due issues such as high interest rates or short-term payment requirements. A $5,000 payday loan with high interest rate, high administrative fees and immediate payback terms may create a cash-flow nightmare, so in a situation such as this OPD is a much better option.

An application to court is made to freeze your debts, as well as interest rates charged by your creditors. You then arrange to make monthly payments — for a term up to 3 years. Interest of 5 percent is charged on the outstanding balance, at a rate that is considerably lower than those charged by your creditors, so you can pay off your debts quickly. This program is run by Money Mentors, a not-for-profit organization mandated by the Provincial Government. For more information, check out their website here.