A consumer proposal is a perfect alternative to bankruptcy. It is a better way of negotiating debt reduction and making the payment up to five years. Unlike bankruptcy, the terms of the proposal allow the person to retain their assets. It is usually an agreement between you and the creditors on a payment plan for part of the debt.
One of the basic requirements of planning for such a proposal is the presence of a bankruptcy trustee who has to be licensed. For the proposal to be fully legally binding, the creditors must first accept it before proceeding.