Consumer proposal glossary of terms


An annulment is the formal cancellation of a consumer proposal.

See also: Annulment of a consumer proposal.


Assessment is a term used to describe your consultation with a Licensed Insolvency Trustee firm when discussing a consumer proposal.

The Bankruptcy and Insolvency Act specifies what should be covered in your assessment.

Assessment Certificate

Suppose you proceed with a consumer proposal or bankruptcy. In that case, the trustee will prepare an Assessment Certificate to record your decision and acknowledge that you were made aware of all the options available.

See also: What is a Licensed Insolvency Trustee?


Anything that you own is an asset. An asset could be your house, car, cash or savings account.

These assets have to be disclosed before filing a consumer proposal, and in most cases, your assets are protected.

Bankruptcy and Insolvency Act (BIA)

The Bankruptcy and Insolvency Act is the written law on insolvency in Canada. It governs bankruptcy and consumer proposals.

See also: Bankruptcy and Insolvency Act

Certificate of Full Performance

When you complete your consumer proposal, your Licensed Insolvency Trustee will give you a Certificate of Full Performance to confirm that you have satisfied all of the terms of your proposal.

Consumer Proposal

A consumer proposal is a legally binding agreement between you and your creditors, filed through a Licensed Insolvency Trustee.

Through this agreement, you repay your creditors a portion of what you owe, helping you get your finances under control and your life back on track.

See also: What is a consumer proposal?


The ability to obtain goods or services before payment, based on an agreement that payment will be made in the future. By obtaining credit, you are liable for that debt.


A creditor is an individual or business that you owe money. Your creditor may be a secured or unsecured creditor.

Creditor Meeting

Once you file a consumer proposal, a creditor can request a creditor meeting. It doesn’t always happen, but a creditor who holds at least 25% of your debt may request a meeting.

If a meeting goes ahead, your creditors will vote to accept, refuse or change your proposal.

See also: How to file a consumer proposal.

Credit Report

A credit report is an overview of your credit history. Your credit report is used to determine eligibility when you borrow money or apply for credit.

Credit Score

Your credit score is a number that represents how you manage credit and the risk involved if the lender were to lend you money. This credit score is based on information from your credit report. Credit scores are based on many factors such as payment history, debt levels and how much credit you currently have.

The higher your credit score, the better your chances of obtaining credit such as a loan or credit card. Your credit score will go up and down based on your ability to manage your credit responsibly.

Your credit score is affected by a consumer proposal, but it won’t be irreparably damaged. You can take steps to improve your credit score.

See also: How will a consumer proposal affect my credit score?

Home Equity

Home equity is the difference between the value of your home and the remaining balance on your mortgage. Your equity increases as you pay off your mortgage or if the value of your home increases.

When you file a consumer proposal, your Licensed Insolvency Trustee is required to look at whether your house has any equity.

If you have equity in your home, your trustee will advise on what you should offer your creditors in your consumer proposal to make it attractive to them. This is to ensure that your creditors accept your proposal.

See also: Home equity in a consumer proposal.


Insolvency occurs when someone cannot pay their debts on time.

When you are insolvent, filing a consumer proposal is one of many options.

Joint filing

Two people can file a consumer proposal together, known as a joint consumer proposal.


Liabilities are debts that you owe to a creditor.

Licensed Insolvency Trustee

If you are looking to enter a consumer proposal in Canada, this must be administered by a Licensed Insolvency Trustee.

A trustee is a licensed professional by the Office of the Superintendent of Bankruptcy Canada.


An acronym for Licensed Insolvency Trustee.


The Office of the Superintendent of Bankruptcy (OSB) is an agency within Industry Canada that ensures that bankruptcies and insolvencies in Canada are conducted fairly and orderly.

All Licensed Insolvency Trustees (LITs) are licensed and regulated by the OSB to comply with all aspects of the Bankruptcy and Insolvency Act.

The OSB will also maintain public records of bankruptcy proceedings, investigate complaints and undertake regular reviews, audits and inspections.


Short for Licensed Insolvency Trustee, a professional licensed by the Office of the Superintendent of Bankruptcy to administer insolvency proceedings such as a consumer proposal or bankruptcy.

Further information

Filing a consumer proposal requires a consultation with a Licensed Insolvency Trustee.

If you are interested in a consumer proposal, let us connect you with a trustee today for a confidential consultation.

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