What to Do When Consumer Proposal Fails?

consumer proposal

When you are struggling financially, it can be difficult to know where to turn for help. You may have heard of a consumer proposal as a way to get your finances back on track, but what happens if the proposal fails? Here are some steps to take if your consumer proposal falls through.

1. Make a new budget

The first step is to take a look at your finances and make a new budget. This will help you to see where your money is going and where you can make changes. You may need to make some tough choices, but it is important to get your finances under control.

The best way to start making your new budget is to track your spending for a month. This will give you a good idea of where your money goes each month. You can use a budgeting app or simply write everything down in a notebook.

2. Talk to your creditors

If you have creditors that you are unable to pay, it is important to communicate with them. Let them know that you are having financial difficulties and ask for more time to make payments. Many creditors are willing to work with you if they know that you are trying to improve your situation.

You can prove your willingness to improve on the situation by making regular, small payments. This shows that you are making an effort to repay your debt and that you are not trying to avoid your obligations.

3. Consider debt consolidation

If you have multiple debts, you may want to consider consolidating them into one loan. This can help to simplify your finances and make it easier to keep track of your payments. Debt consolidation can also help you to get a lower interest rate, which can save you money in the long run.

Just be careful not to take out a consolidation loan that has a longer term than your original debts. This can end up costing you more in interest in the long run.

4. File for bankruptcy

A consumer proposal or bankruptcy are two ways to deal with a bad financial situation. When the proposal fails, you may want to consider filing for bankruptcy. This is the last resort option, but it can give you a fresh start.

Filing for bankruptcy should not be taken lightly, as it can have a serious impact on your credit score and your ability to get new lines of credit. However, if you are unable to make payments on your debts, it may be the best option for you. 

5. Seek professional help 

If you are struggling to make ends meet, it may be time to seek professional help. A financial counselor can assist you in making a budget and dealing with your creditors. They can also help you to understand your options and make a plan to get out of debt.

Making the decision to seek professional help is not easy, but it can be the best way to get your finances back on track.


If you are struggling with debt, it is important to seek help as soon as possible. The sooner you take action, the easier it will be to get your finances back on track.

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