Unfortunately, Consumer Proposal payments to the Trustee are not tax-deductible, even though the process is overseen by a government agency, the Office of the Superintendent of Bankruptcy. It is always important to remember that when you make those proposal payments you are paying off a portion of the unsecured consumer debt you owe to your creditors. This is money you have already spent on goods and services. The major benefit of filing a Consumer Proposal is to obtain relief from the stress of having a large debt load and an end to any further interest being charged on your debts.