Can You Keep Your Assets During a Consumer Proposal
Are you thinking about going for a consumer proposal but not sure if you’ll get to keep your home, car, or other personal items?
This is something many people living in Canada ask when they start learning about the consumer proposal option. The good news is that this solution is made to protect your important things while helping you handle your debts in a better way.
Let’s break everything down in plain and simple language so you don’t get confused or stressed about what happens to your stuff.
First, What is a Consumer Proposal?
A consumer proposal is a legal agreement between you and the people or companies you owe money to. It’s arranged by a Licensed Insolvency Trustee (LIT), who helps you offer a deal to pay part of your debt over time. The rest is cleared once you complete your payments. This is a government-approved process and is one of the most popular ways Canadians deal with debt without losing their peace of mind.
The best part about a consumer proposal canada is that it lets you handle your money better without giving up things you’ve worked hard for.
Do You Have to Give Up Your Assets?
Now to the big question do you get to keep your assets during a consumer proposal? The short answer is yes, you do. That’s one of the biggest reasons people choose this option instead of something like bankruptcy.
In most cases, your house, car, savings, and personal things are all safe. You don’t need to sell them or lose control of them. You continue to live in your home, use your car, and keep your valuables as long as you keep up with your monthly payments under the proposal.
What Types of Assets Can You Keep?
Let’s talk about the common things people usually ask about:
Your House
If you have a house and you’re making regular payments on your mortgage, you can continue living in it. A consumer proposal doesn’t touch your mortgage or force you to sell your house. It makes things easier so you can focus on one clear payment plan and keep your home safe.
Your Car
As long as you’re paying your car loan or lease, your vehicle stays with you. Your car is important, especially if you need it for work, family, or daily use. This option understands that and allows you to move forward while keeping your transportation sorted.
Your Savings and RRSPs
Your registered retirement savings plans (RRSPs) are generally protected. Even if you have a small savings account, you don’t have to worry. The idea behind the proposal is not to take things away from you but to help you manage better and keep moving ahead.
Personal Items and Furniture
Your household goods, clothes, electronics, and other personal things are all safe. You keep everything you need to live normally and comfortably.
Why You Still Keep Your Assets
The reason you can keep your things is simple and also learn what is a consumer proposal. A consumer proposal focuses on what you can pay, not what you own. It looks at your income and your regular expenses and creates a plan that works for both you and the creditors.
It’s not about taking things away. Instead, it helps you find a balance where you can keep your important things and still properly deal with your debt.
How the Trustee Helps You
A Licensed Insolvency Trustee plays a big role in keeping everything sorted. They talk to your creditors, handle the paperwork, and guide you through the whole process. You don’t need to deal with any of the stress. They work with you and help make sure your assets are safe while your proposal is moving forward.
They’re trained, licensed, and approved by the government. You can trust that they’re giving you the right advice to keep you protected and confident during the process.
Payment Plans Are Based on What Works for You
The monthly payment you agree to in your consumer proposal is made to fit your real-life budget. You don’t have to stretch yourself too thin or worry about not being able to manage. This payment replaces your other unsecured debts like credit cards, personal loans, or lines of credit. And because it’s a single fixed amount, your monthly money planning gets easier too.
Can You Sell Assets If You Want?
Yes, if you feel like selling something on your own to make things easier—like a second vehicle or unused electronics—you can do that. It’s completely your choice. The proposal doesn’t force you to sell anything. It simply gives you space to think and decide what’s best for your situation.
What About New Assets You Get After the Proposal Starts?
If you buy or receive something new after your proposal has started, that’s yours to keep. This includes new income, gifts, tax refunds, or any small purchases. The agreement is based on your situation when you filed it, and it doesn’t touch things you earn or get later.
This gives you more motivation to earn better and save without any worry.
What If You Own a Small Business?
Even small business owners can file a consumer proposal. You can continue running your business, serving your customers, and keeping your income coming in. The goal is to keep everything stable and help you grow while sorting out past debt.
Final Thoughts
If you’re planning to go for a consumer proposal and you’re thinking about what happens to your assets, you don’t have to worry. You get to keep your house, your car, your savings, and your items. That’s how this process is built—it helps you take care of what you have while giving you a strong and legal way to clear your debt.
There’s nothing complicated or scary about it. With a good trustee and a clear plan, you’ll be back on your feet without giving up the things that matter to you. This is a helpful option for anyone who wants to move forward without letting go of what they’ve built so far.
It’s a smart and clear path to better money habits and a peaceful life, all while keeping your valuable things with you. That’s what makes the consumer proposal a helpful solution that many Canadians feel comfortable with.
