Program · Federal
Consumer Proposal (LIT)
A legally binding offer to repay creditors a portion of what you owe over up to 5 years. Filed only by Licensed Insolvency Trustees under the Bankruptcy and Insolvency Act. You keep your assets.
Eligibility
- Insolvent (cannot pay debts as they become due)
- Total unsecured debt up to $250,000 excluding principal residence mortgage
- Proposal must offer creditors more than they would recover in bankruptcy
Limits and rules
- Payments up to 5 years maximum
- Two mandatory credit counselling sessions
- Stays on credit report for 3 years after completion or 6 years from filing, whichever is earlier (R7 rating)