Recent statistics from the Office of the Superintendent of Bankruptcy show the steady increase in the number of consumer proposals filed by Canadians over the last five years. They also show the increasing proportion of consumer proposals filed versus bankruptcies. In Western Canada, the proportion of consumer bankruptcies files has increased steadily to almost 50% of all filings versus only 25% five years ago.
Consumer proposals are preferable for many individuals because they don’t have the perceived stigma of bankruptcy and can allow for a reduction of up to as much as 80% of total unsecured debt.
A consumer proposal can only be filed through a Licensed Trustee Insolvency and Restructuring such as G. Slocombe & Associates Inc. Individuals looking to file a proposal should be cautious about representations by unlicensed “debt settlers” who simply take a hefty fee for simply passing a person on to an actual licensed Trustee.