Overwhelmed by debt in BC? You’re not alone-and support is here.
A consumer proposal can help you lower your debt, avoid bankruptcy, and keep what matters most. At Farber, our Licensed Insolvency Trustees offer judgment-free support and personalized solutions that work for British Columbians.
What Is a Consumer Proposal?
A consumer proposal is a formal, legally binding debt solution governed by the Bankruptcy and Insolvency Act. It allows you to repay only a portion of your unsecured debt through manageable monthly payments — without filing for bankruptcy.
This process is administered by a Licensed Insolvency Trustee (LIT), like Farber, and once the majority of your creditors accept the terms, it becomes legally binding on all parties.
Benefits of a Consumer Proposal in BC
A consumer proposal can provide lasting debt relief and a fresh start. Key benefits include:
- Reduce your total debt by up to 80%
- Stop interest charges, collection calls, wage garnishments, and lawsuits
- Keep your home, vehicle, and RRSPs
- Make one simplified, affordable monthly payment
- Avoid bankruptcy while staying in control of your finances
- Gain legal protection from creditors
Are You Eligible?
You may qualify if:
- You owe less than $250,000 in unsecured debt (excluding your mortgage)
- You’re unable to pay your debts as they come due
- You live in BC or have assets in the province
- You have a reliable income to support regular proposal payments
Keep in mind: A consumer proposal can affect future borrowing decisions like mortgage renewals.
Step-by-Step
The Consumer Proposal Process
We begin with a confidential, no-pressure consultation to review your situation. This is completely free—with no upfront costs or obligations.
We create a personalized repayment plan based on your budget and file it with the Office of the Superintendent of Bankruptcy Canada.
Creditors have 45 days to review and vote. If those holding the majority of your debt agree, the proposal becomes legally binding.
Make fixed, interest-free payments over up to five years. Once complete, your remaining eligible debt is erased—giving you a clean financial slate. Plus, you’ll receive two mandatory counseling sessions to help you manage your finances and stay on track.BC Consumer Proposal vs Bankruptcy
Not sure which is best? Understanding the differences between bankruptcy and a consumer proposal can help you make an informed decision.
Consumer Proposal
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Credit Impact
R7 rating for 3 years post-completion
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Asset Protection
Keep most assets
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Duration
Up to 5 years
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Cost
Fixed, predictable monthly payment
Bankruptcy
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Credit Impact
R9 rating for 6–7 years (1st time)
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Asset Protection
May require surrender of assets
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Duration
9–21 months (first-time)
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Cost
Variable based on income
Not sure if a consumer proposal is right for you?
You may need to seek out debt counselling or debt consolidation services to help you explore all your debt relief options. These services are offered by credit counselling agencies or financial institutions like a bank.
Why Choose Farber in British Columbia?
Trusted Since 1979
We’ve supported thousands of people on their journey to debt freedom—offering trusted, compassionate guidance for over four decades.
Offices Across BC
Whether you prefer meeting in person or virtually, we make it easy to access help from anywhere in the province.
Deep Provincial Expertise
Our Licensed Insolvency Trustees understand the financial challenges unique to life in BC—from high housing costs to seasonal income.
Comprehensive Support
From rebuilding credit to planning for a debt-free retirement, we’re here for more than just the proposal. You’ll receive personalized advice every step of the way.
I was talking with Leah Crawford and Amanda Coleman from the BC office. Both were very knowledgeable, helpful and friendly. I'm not very good with technology (computers) They helped me, step by step through the whole process. Thank you to the Farber team for helping me. Peter Vanderwal
Jeff from BC was a gentleman and scholar throughout the whole process. Thank you for making me feel I made the best decision.
When the world was struck down with COVID-19 I lost my work my job my career 23 years gone in a blink of an eye. The British Columbia government put a lock down on the citizens of BC. I knew I was losing control of my financial situation and I was hooked up with Farber. They did a awesome job on lowering my debt. I would recommend Farber to anyone who needs financial help.
Not sure if a consumer proposal is right for you?
We’ll walk you through all available options—including bankruptcy and consumer proposals—to help you choose the best solution for your situation. Both options include mandatory credit counselling to support your financial recovery.