Steps in a Consumer Proposal. Questions? Click to Text. (M-F 9-5.)
Step #1 of 5: Consultation with the Trustee (Continued)
Cannot owe more than $250,000, excluding house mortgage (if more than $250,000 is owed a Division I Proposal is available);
Term cannot be for more than 5 years;
Must be filed with a trustee in bankruptcy;
Creditors must be better off than if you go bankrupt;
"Better off" can mean that payments are made monthly over time;
A third party such as a relative puts up a lump sum to be paid only if the creditors accept the proposal.