Debt Consolidation: A consumer proposal combines multiple debts into a single manageable monthly payment, easing the financial strain caused by juggling multiple creditors.

Reduced Debt Amount: Through negotiations with creditors, a consumer proposal often results in a reduction of the total debt amount. Creditors recognize the challenges faced by debtors and are often willing to accept a reduced amount over bankruptcy, as it ensures some repayment.

Extended Repayment Terms: Consumer proposals typically allow for an extended period (usually up to five years) for debt repayment. This ensures that debtors can meet their financial obligations without undue pressure and stress.

Legal Protection: Once a consumer proposal is filed, it provides an automatic stay of proceedings, protecting individuals from creditor actions such as wage garnishments, lawsuits, or collection calls. This protection allows debtors to focus on their financial recovery without constant harassment.

Credit Rating Rehabilitation: Although a consumer proposal will impact an individual's credit rating, it is often less severe than the consequences of bankruptcy. With diligent adherence to the repayment plan, debtors can begin rebuilding their credit history sooner.

Professional Guidance: Consumer proposals require the expertise of Licensed Insolvency Trustees (LITs), who assess an individual's financial situation, negotiate with creditors, and provide personalized guidance throughout the process. LITs ensure debtors understand their rights, obligations, and the best course of action to regain financial stability.