One time settlement !
I have recently proposed to my financial institution a one time payment to settle my loans which are now in default. I am anxiously awaiting there response.
Is this in fact, considered a legal consumer proposal, or do I have to make a proposal through a licenced trustee
This is not a consumer proposal – you have simply attempted to negotiate a settlement on your debt. Bringing in a trustee to make this a consumer proposal only makes sense if you have other debts that you need to deal with – if you only owe the one place and they accept your deal, you should be okay. If you have other debts, then you may want to speak to a trustee before you finalize this deal – it may be that you can clean up everything in one shot by filing a consumer proposal.