Consumer Proposal Cost in Canada: What the Payment Includes

The short answer: there is no universal consumer-proposal cost in Canada. A real proposal payment is built from your complete financial picture and the terms of the offer. A percentage copied from another person’s file is not a quote for you.

The Office of the Superintendent of Bankruptcy (OSB) describes a consumer proposal as an offer to pay creditors a percentage of what is owed, extend the repayment period, or do both. The proposal term cannot exceed five years. The OSB also says that a Licensed Insolvency Trustee’s remuneration is federally regulated.

That gives you useful guardrails, but not a universal fee table. Your written estimate should be based on your debts, income, expenses, assets, secured obligations, household circumstances, and the proposal terms under consideration.

What Determines the Total You Pay?

Ask the LIT to show how each of these affects the proposed total:

1. The debts included: list every creditor, balance, co-signer, security, tax debt, student loan, support obligation, and disputed account.
2. Your income and expenses: the payment has to be achievable after ordinary household costs, not merely mathematically possible.
3. Your assets and secured debts: home equity, vehicles, investments, and secured-payment obligations can affect the analysis and should not be reduced to a “keep everything” promise.
4. The proposal terms: amount, number of payments, payment frequency, amendments, missed-payment rules, and early-completion terms.
5. Administration costs: ask for LIT remuneration, disbursements, taxes, government charges, and any separate third-party or advisory fees as separate line items.

The useful question is not “What percentage do most people pay?” It is: “What would I pay under this written proposal, what does each dollar cover, and what happens if my circumstances change?”

Monthly Payment Arithmetic: Illustrations Only

The arithmetic is simple once a total and term are known:

illustrative monthly payment = illustrative total proposal amount ÷ number of payments

These examples are not representative offers, approval odds, or debt-reduction promises. Use the consumer proposal calculator to test arithmetic with your own inputs, then ask an LIT to explain the assumptions and replace the illustration with a file-specific assessment.

What to Ask About Fees

Before signing anything, request a written answer to these questions:

• What is the total amount I would pay if the proposal is completed as written?
• Which amount goes to creditors, which amount is LIT remuneration, and which amounts are disbursements or taxes?
• Are any debt-advisory, credit-repair, loan, referral, or other third-party fees separate from the proposal?
• Is the initial assessment free, and what services are included before filing?
• What happens to the payment and costs if creditors request an amendment?
• What happens if I miss a payment, need an amendment, or want to complete early?
• Which debts are outside the proposal and still require separate payments or advice?

The OSB warns that debtors can incur separate debt-consultant fees in addition to regulated LIT remuneration. Read the OSB’s consumer-insolvency business-practice review before agreeing to a separate fee arrangement.

Compare the Cost With Other Options

Cost alone does not decide the right option. Compare the total cash outlay, legal protection, asset implications, credit effect, eligibility, and failure risk:

• Consumer proposal vs bankruptcy: compare the formal alternatives with your assets, income, and obligations in view.
• Consumer proposal vs debt consolidation: compare a formal insolvency process with a loan that normally requires repayment of principal and interest.
• Debt-management plan vs consumer proposal: compare creditor cooperation and full-repayment plans with a legally binding proposal.
• DIY hardship negotiation: consider whether a direct arrangement is realistic before collection or legal pressure escalates.

If you have received a court document, garnishment notice, or urgent collection notice, start with notice triage before choosing based on a percentage or calculator result.

Bottom Line

A consumer proposal calculator can show what a proposed total would mean per month. It cannot determine your eligibility, predict creditor acceptance, value your assets, interpret exceptions, or quote the complete cost of a legal filing. Use the calculator for arithmetic, ask for a written breakdown, and compare the proposal with bankruptcy and non-insolvency options before signing.

For the broader decision, return to the consumer-proposal hub. For a file-specific assessment, use the OSB’s guidance to find a Licensed Insolvency Trustee.

This article is general information, not legal or financial advice.