An alternative for someone who is unable to pay his debts is full but can pay a small sum of it, Consumer proposal is his best option. It is a legally-binding agreement between the creditors and individual where one negotiates to pay a fixed percentage of money within fixed time duration to settle the debt.
Debts included in your consumer proposal
All unsecured debts are included in consumer proposal such as credit cards; loans from friends and family, store cards etc. However, all the secured debts such as housing and leased vehicles are to be paid in full and are not part of the consumer proposal directly dealing with the creditor.
Benefits of filing consumer proposal
What makes consumer proposals better than any other option? Following are the reasons.

They key benefits of filing a consumer proposal includes:
• Avoiding bankruptcy: consumer proposal saves you from the trouble of filing for bankruptcy. If you already fled a bankruptcy before, consumer proposals will save you from filing a second time consuming one.

• Taking control of your financials: Consumer proposals release you from the stress of multiple debts. With that gone, you are able to concentrate all your efforts into focusing towards the future and making changes to avoid such a circumstance.

• Freezing of more Interest the moment you file: once you file a consumer proposal, all your loans, credit cards and taxes stop accumulating addition interests.

• Your assets are secure: Consumer proposals provide you with the ability to hold on to your saved or invested in assets. With consumer proposals you can be sure of keeping your home, vehicle and RRSPs (Registered Retirement Savings Plan) safe. AS long as your assets have NO equity and RRSP is purchased more than 12 month before filing proposal.

• Time Extension for payments: It is the best way t manage your debts. Consumer proposals provide a time of 5years i.e. 60 monthly payments. You also have the opportunity to pay lumps sum money if you want to. Such elasticity enables one to mange his financials easily.

• Creditors cannot take legal action: It restricts your creditors from the day you filed for a consumer proposal. It puts an end t the stressful calls from collection agencies warning you of taking your assets away.

• Consolidated payments: Filing a consumer proposal means that all your debts have been consolidated and you have to pay only a single payment every month to the Trustee to pay off your debt. This will provide you with a free hand at saving more money. Discuss your options with a trustee if you want to make lump sum payments at a time.