So what will you actually pay?
The total you repay in a consumer proposal isn’t a fixed price. It depends on what you earn, what you own, and what your creditors will accept.
Say you owe $50,000 in unsecured debt. If your income and assets indicate you can repay $18,000, that’s $300 a month over five years. The trustee’s fee is included in that total, not added on top. Your figure depends on what you earn and own, so treat this as an illustration.
No matter the total amount, it will be divided into fixed monthly payments over a term of up to five years, with no interest added. The payment never changes throughout the term, and it will not increase even if your income does.
The exact cost of a consumer proposal depends on your own situation. Speak to a Licensed Insolvency Trustee for a free consultation.
How a Licensed Insolvency Trustee gets paid
In a consumer proposal, the trustee’s fee is set by a government tariff under the Bankruptcy and Insolvency Act. Every Licensed Insolvency Trustee in Canada works from the same tariff, so the fee doesn’t increase just because your file looks complicated or you picked a bigger firm.
What the tariff covers
The cost of a consumer proposal is made up of four charges.
| Charge | Amount | Paid to |
|---|---|---|
| Administrator fee | $750 on filing, $750 on approval, plus 20% of the money paid to creditors | Trustee |
| Counselling | $85 a session, two sessions | Trustee |
| Filing fee | $100 | OSB |
| Regulatory levy | 5% of the money paid to creditors | OSB |
Source: Government of Canada – Bankruptcy and Insolvency General Rules (C.R.C., c. 368)
All expenses come from the payments you make into the consumer proposal. Nothing is billed to you on top, and there’s no upfront retainer. You pay nothing until the proposal is filed.
Beware that debt advisors charge extra
Unlike debt advisors, Licensed Insolvency Trustees are not permitted to charge extra fees. Unfortunately, many individuals end up paying unregulated debt advisors for services that a trustee already covers.
In 2022, debt advisors were involved in approximately 22% of consumer proposals. The Office of the Superintendent of Bankruptcy (OSB) warns that these unregulated advisors often charge for services that a trustee can do.
That share has dropped since. After a peak in November 2023, about 48% fewer estates reported financial advice from a debt advisor.
Source: Office of the Superintendent of Bankruptcy Canada – 2024-25 Annual Report
Consumer proposal cost vs the other options
Compared with other ways out of debt, the cost of a consumer proposal is structured differently. A consolidation loan rolls your debts into one loan you repay in full, with interest. Bankruptcy costs are worked out from your income instead, through surplus income payments.
Watch out for debt settlement companies. They charge a separate fee for negotiating with your creditors, and the arrangement isn’t formal or legally binding.
Source: Financial Consumer Agency of Canada – Using a Debt Settlement Company
| Option | What you pay | A fee on top? | Interest |
|---|---|---|---|
| Consumer proposal | Based on what you can afford, over a maximum of five years | No, the trustee’s fee is deducted from your payments | None |
| Debt consolidation loan | The full amount you owe, plus interest | No separate fee, but you have to qualify | Yes |
| Debt settlement company | The settlement plus the company’s own charge | Yes, a separate fee | Varies, with no legal protection |
| Bankruptcy | Based on your income, family size and assets | No, the trustee’s fee comes from the estate | None |
A consumer proposal is the route most people take. In the 12 months ending March 31, 2026, 78.5% of consumer insolvencies were proposals rather than bankruptcies, and proposal filings rose 3.7% on the year before.
Source: Office of the Superintendent of Bankruptcy Canada – Insolvency Statistics in Canada, March 2026
Compare a consumer proposal and bankruptcy, or see how the cost of bankruptcy is worked out.
Is the consultation free?
Sitting down with a Licensed Insolvency Trustee to review your income, debts, and assets is completely free, and you are not obligated to proceed with anything.
The trustee evaluates your debts against your income, then works out what the monthly payment amount would be in a consumer proposal.
You can determine if a consumer proposal is suitable for you, what your monthly payments would be, and how it compares to the other options before you commit to anything.
Find out what your consumer proposal would cost
A free consultation with a Licensed Insolvency Trustee will provide you with an accurate consumer proposal cost tailored to your specific situation, with no obligation to proceed afterward. Begin by answering a few quick questions to get started.
Frequently asked questions
Are there any upfront fees for a consumer proposal?
No, there are no upfront fees for a consumer proposal. The trustee’s fee is paid out of the monthly payments you make once you file your consumer proposal.
Do different trustees charge different amounts?
No, they cannot. The fee is set by a government tariff under the Bankruptcy and Insolvency Act, meaning it is the same whether you go to a small local office or a national firm. What varies is the level of service and the quality of advice, not the price of the service.
Does a consumer proposal charge interest?
No interest is added after the consumer proposal is filed. The total amount you agree to is the total amount you will pay.
Can you include CRA tax debt in a consumer proposal?
You can include CRA tax debt in a consumer proposal, provided that the CRA has not already secured the debt against your property. Ordinary income tax debt is considered unsecured, which means it can be included in the proposal along with credit card debts and loans, all covered by the same monthly payment.
Is a consumer proposal cheaper than paying my debts off myself?
In many cases, a consumer proposal is cheaper. You repay a portion of your unsecured debt without any interest, which often results in a lower total amount than if you were to pay every dollar plus interest on your own. Whether a consumer proposal is a better option for you depends on your income and total debt.
What happens if I pay it off early?
If you pay it off early, you’re finished. Clear the agreed total ahead of schedule, and the consumer proposal ends sooner without any penalty.
Are the financial counselling sessions an extra cost?
No. The two required financial counselling sessions are part of a consumer proposal, and their cost is included in the tariff. It’s not charged to you separately.
