A consumer proposal in PEI is an alternative to bankruptcy
While not everyone is familiar with it, a consumer proposal can be a powerful debt-relief option that may significantly reduce or even eliminate what you owe. It must be filed through a Licensed Insolvency Trustee (LIT), like our team.
What is a consumer proposal?
A Government-Approved Debt Relief Option
A consumer proposal is a formal agreement, filed through a Licensed Insolvency Trustee (LIT), that allows you to repay only a portion of your unsecured debt. It’s legally binding and can reduce your total debt by up to 80%, making it one of the most effective debt relief solutions available in Canada.
Why Use a Licensed Insolvency Trustee in PEI?
Farber’s experienced LITs will support you every step of the way — from assessing your situation to filing the proposal and managing your payments. We ensure the process is handled with care, confidentiality, and a focus on long-term financial recovery.
Top Benefits of a Consumer Proposal
Avoid Filing Bankruptcy in PEI
Unlike bankruptcy, a consumer proposal allows you to keep important assets such as your home, vehicle, and RRSPs. It’s a powerful alternative to bankruptcy in PEI, designed to help you resolve debt without starting over.
Stop Collection Calls Immediately
Filing a consumer proposal puts an immediate stop to collection calls, legal actions, wage garnishments, and interest charges — giving you space to breathe and focus on rebuilding.
Lower Monthly Payments
Consolidate your debts into one fixed, affordable monthly payment, tailored to your financial situation. This structure makes budgeting easier and more predictable over the proposal’s typical five-year term.
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.
Am I Eligible for a Consumer Proposal in PEI?
Who Qualifies
If you live in Charlottetown or elsewhere in Prince Edward Island and owe less than $250,000 in unsecured debt (not including your mortgage), you may be eligible for a consumer proposal. This is a practical option for individuals who are unable to repay their debts in full but want to avoid bankruptcy and regain financial stability.
Debts That Can Be Included
A consumer proposal can cover a wide range of unsecured debts, including:
- Credit card balances
- Payday loans
- CRA tax debt
- Personal loans
- Unsecured lines of credit
Take the first step
The Consumer Proposal Process in Prince Edward Island
Book a free, no-obligation consultation — either online or in person — with a Licensed Insolvency Trustee. We’ll review your situation and help you understand your options.
Our team will work with you to develop a realistic and fair repayment plan based on what you can afford. We then handle the official filing with your creditors and the federal government.
Creditors have 45 days to vote on your proposal. If the majority (by debt value) accepts it, all creditors are bound to the agreement — even those who voted no.
You’ll make one manageable monthly payment to Farber, who distributes the funds to your creditors. After your term is complete, the remaining eligible debt is legally forgiven — allowing you to move forward with a clean slate.Why Choose Farber in PEI?
Personalized Support from Local Experts
Our friendly, experienced team understands the unique challenges faced by individuals and families in Prince Edward Island. We’ll take the time to listen and recommend the best debt solution for your specific situation — with empathy and care.
Federally Licensed & Trusted
Farber is a federally licensed insolvency firm with more than 45 years of experience helping Canadians eliminate debt and rebuild their finances. You can count on us for clear guidance, reliable support, and proven results.
Flexible, Judgment-Free Service
We know how stressful debt can be — that’s why we offer a pressure-free, compassionate environment. Whether it’s a consumer proposal, debt counselling, or debt consolidation, we’ll walk you through your options with respect and transparency.
We’re Here When You Are Ready
Connect with a Farber advisor in PEI to explore your debt relief options. Whether you’re located in Charlottetown or elsewhere on the island, we offer both virtual and in-person appointments — making it easy to get the help you need on your terms.
Right from the outset I was treated with dignity and professionalism, and Marcey who was the lead on my particular case was excellent. Also the other individual I can't remember his name I think it was John when we did the signing was also very informative and professional. Again I was shown empathy and professionalism as I was very embarrassed to go through this process however your staff who took care of my case were more than adequate they were actually fantastic. Thank you I'd be more than happy to recommend your services to anybody I know who's going through this unfortunate situation
Great Service and Professionalism I had an amazing experience from start to finish, the team was incredibly professional, attentive, and efficient.
I would like to express my gratitude and appreciation on the fastracking of my debt solutions through Consumer Proposal application initiated by Ms. KAUR. The system they used via teams gives me less expenses and time in doing the processing and signing without physical presence. I am truly blessed that Farber team extended their big help to those financial burden through thus program. I will recommend to my friends who have the same financial situation. I salute you guys. Thank you very much.
Frequently asked questions
Want to understand more about your rights and how consumer proposals work?
Visit the Office of the Superintendent of Bankruptcy Canada or review the Bankruptcy and Insolvency Act for full legal details.