informal vs. formal proposal

August 7th, 2012 by Questions

I’m considering going through with a consumer proposal and I contacted this not for profit place which told me that they do informal proposals. I asked the difference and they told me that it’s informal in the sense that a trustee doesn’t complete it and it has has less of an impact on my credit bureau. My question is that if I go through with this. can the creditors retract the proposal at any time? Is it better to go through with a formal consumer proposal?

Posted from: Ontario


One Response to “informal vs. formal proposal”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Firstly, an informal and a formal proposal are typically treated very similar by the credit bureau. The bigger problem is that the creditors are not required to deal with the non-profit place as there is no court sanctioning. As well, be very careful about these non-profits, as there are many of them out there that are taking advantage of debtors on a very regular basis. (See:, this deals with Cambridge life specifically, but there are many players doing the exact same thing). My advice, contact a trustee, that way you can be sure you are dealing with a professional.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)