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This is a common question I get from clients who are filing or considering filing a consumer proposal.

When filing a consumer proposal, you are effectively making an offer to the creditors to pay a specific amount or percentage of your debts over a period of time. Once the proposal is filed, the creditors do not have any rights to pursue payment for the debt, or add interest, as they will be receiving payments (dividends) from your proposal as outlined in the terms. Once the proposal is completed, the balance of the debt is forgiven.

If you do not complete your duties and finish the process, you will be responsible for the entire balance of the debts, including interest, and creditors are able to re-establish the collection process.

That is why it is very important to complete all of your duties and finish the proposal payments.