Consumer proposal is a document presented for negotiating a legal settlement between the creditors and the debtors. These kinds of proposals are generally being created by the federal government and get legally bounded once it is being accepted by the creditors. A successful consumer proposal always allows the debtor to avoid the bankruptcy by making one monthly payment with the return distributed among all the creditors. Thus, such kind of a document has to be created meticulously so that it contains all the important lineaments and gets easily accepted by the creditors. For drafting an effective consumer proposal one should consider the following points:

  • Prior preparing a consumer proposal, one should know how much money he owes and how much one can repay each month. This analysis is important so that the licensed bankruptcy trustee whom the debtor appoints could determine the amount of unsecured debts of the debtors and can prepare the proposal accordingly.
  • The proposal should extensively garner on the required information like name and address of the debtor, a summary of all his assets, a monthly budget of his family and list of all the debts.
  • A separate section should be devoted for specifying the terms of the consumer proposal. Moreover, it should also underscore the legal actions that would be subjected to any of the parties involved on violation of the prescribed terms.
  • The proposal should essentially contain the timeline within which all the creditors to whom it is being sent should be accepted.
  • In order to impart an authentic look to the document, the proposal should have a clear mention of the legal body that shall be responsible to intervene in case of any discrepancies.

A consumer proposal could be the right solution for any debtor if he could draft a rational proposal by maintaining the above-mentioned points.

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