Learn what a consumer proposal is, how it works in Alberta, and how Blanchard & Co. can help you regain control of debt without filing bankruptcy.
If you’re struggling with overwhelming debt, you’ve likely asked yourself: What is a consumer proposal and how does it work? For many Albertans, this debt solution offers a legal and structured way to regain financial stability without declaring bankruptcy. At Blanchard & Co., we specialize in helping individuals understand their options and navigate the process with confidence.
Understanding What a Consumer Proposal Is
A consumer proposal is a legally binding agreement, administered under the Bankruptcy and Insolvency Act of Canada, that allows you to settle your unsecured debt by paying back only a portion of what you owe. Instead of dealing with multiple creditors, your Licensed Insolvency Trustee (LIT) — such as Blanchard & Co. — negotiates directly with your creditors on your behalf.
When you ask what is a consumer proposal, the answer is simple: it’s a debt relief strategy designed to reduce the total amount you owe, consolidate your payments, and provide immediate protection from creditors.
How a Consumer Proposal Works in Alberta
To understand how a consumer proposal works, it helps to break the process into clear steps:
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Assessment of Your Debt – At Blanchard & Co., we review your financial situation and determine if a consumer proposal is your best option.
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Drafting the Proposal – We prepare a repayment plan outlining how much of your debt you can afford to pay back, usually between 20% and 50% of the original amount.
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Creditor Review – Creditors vote on whether to accept the proposal. If the majority agree, all unsecured creditors are bound by the terms.
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Single Monthly Payment – Once approved, you make one fixed monthly payment, usually over a period of up to five years.
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Completion & Debt Freedom – After your final payment, your debts included in the consumer proposal are legally forgiven.
This step-by-step approach makes it clear why so many Albertans turn to a consumer proposal as an alternative to bankruptcy.
The Benefits of a Consumer Proposal
When you search what is a consumer proposal and how does it work, the benefits are often the deciding factor:
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Keep Your Assets – Unlike bankruptcy, you typically keep your home, car, and savings.
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Debt Reduction – Pay back only a portion of your total unsecured debt.
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Creditor Protection – Collection calls and wage garnishments stop immediately once filed.
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Credit Rebuilding – While it affects your credit, many clients start rebuilding during repayment.
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Affordable Payments – Monthly payments are based on what you can afford, not what you owe.
Who Qualifies for a Consumer Proposal in Alberta?
To file a consumer proposal in Alberta, you must:
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Owe less than $250,000 in unsecured debt (excluding your mortgage).
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Have a steady source of income to make regular payments.
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Work with a Licensed Insolvency Trustee like Blanchard & Co.
If you meet these criteria, a consumer proposal could be the right debt solution for you.
Consumer Proposal vs. Bankruptcy: Which Is Better?
One of the most common follow-up questions to what is a consumer proposal is how it compares to bankruptcy. The main differences are:
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Asset Retention – A consumer proposal lets you keep assets, while bankruptcy may require surrendering them.
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Debt Repayment – With bankruptcy, debt is wiped clean but comes with stricter consequences. A proposal allows partial repayment and less impact on your financial reputation.
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Duration – Bankruptcy typically lasts 9–21 months, while a consumer proposal can extend up to 5 years but offers more control and predictability.
For many Albertans, a consumer proposal strikes the perfect balance between financial relief and responsibility.
So, what is a consumer proposal and how does it work? It’s a proven, government-regulated solution that allows you to consolidate your debts, protect your assets, and move forward with confidence.
If debt has become overwhelming, contact Blanchard & Co. today to explore whether a consumer proposal is the right solution for you.
Why Choose Blanchard & Co. for Your Consumer Proposal
At Blanchard & Co., our mission is to guide Albertans through the debt relief process with compassion and expertise. When you’re asking what is a consumer proposal and how does it work, you need more than just definitions — you need trusted professionals to walk you through every step.
We take time to understand your unique situation, negotiate effectively with your creditors, and support you until you are debt free. With offices in Red Deer and across Alberta, we are committed to helping you take back control of your finances.
Book Your Free Consultation with Blanchard & Co.
If you’re wondering whether debt consolidation is the best solution—or if there’s a more effective way to get out of debt—contact Blanchard & Co. in Red Deer today. Our team is here to guide you toward a brighter, more stable financial future.
Need a place to start?
At Blanchard & Co., we’re here to help you make sense of the options and walk with you every step of the way. Not with pressure—but with perspective.