Unlike bankruptcy, you do not lose your assets under this program. Proposals Under the Bankruptcy and Insolvency Act, a trustee or an administrator files a Proposal or an arrangement between you and your creditors to have you pay off only a portion of your debts, extend the time you have to pay off the debt, or provide some combination of both. To be acceptable, your creditors must be better off under a Proposal than if you go bankrupt. The consumer proposals cannot be for more than five years. If the creditors do not accept the Proposal the debtor is not automatically Bankrupt.
Counselling is required.
There is no restriction on the amount a person owes. If the creditors do not accept the Proposal the person is automatically bankrupt effective as at the date of the creditors' meeting. Counselling is not required.