How to Use This Calculator
Use this calculator to compare your current debt payments against your payments under a Canadian consumer proposal.
Enter Your Unsecured Debts
Start by entering all your unsecured debts including credit cards, personal loans, tax debt, unpaid bills, student loans, and any other debts without collateral. For each debt, enter the balance, interest rate, and your current monthly payment. The calculator uses these figures to determine how long it would take to pay off each debt under your current plan and how much interest you'll pay. It’s important to note that student loans can only be included in a consumer proposal if you've been carrying the debt for at least 7 years. If your student loan is more recent, your student loan will be treated as secured debt by the calculator.
Enter Your Secured Debts
Add your secured debts including your mortgage, car loan, and other loans backed by collateral like boats or RVs. For each, enter the balance, interest rate, and monthly payment. Secured debts cannot be included in a consumer proposal. You must continue paying these separately. However, entering them in our calculator allow it to calculate your total monthly obligations after your you filed for a consumer proposal.
Adjust Proposal Settings
Choose your repayment term (1 to 5 years, with 3 years as the standard) and adjust the percentage of debt you'd offer to repay. Consumer proposals can allow you to repay only 20% to 40% of your total unsecured debt, though the actual percentage depends on what you can afford and what creditors will accept. Your Licensed Insolvency Trustees, which you need to file for a consumer proposal in Canada, calculate your offer based on your income, assets, and what creditors would receive if you filed for bankruptcy instead. The proposal must offer creditors more than they would get in bankruptcy for them to accept it.
Understanding Your Results
Click calculate and the results show a side-by-side comparison of your current payment plan versus a consumer proposal. You'll see your current monthly payment for unsecured debts versus the proposed payment, time to pay off unsecured debts under each scenario, total interest you'll pay currently (consumer proposals are interest-free), and your total savings including all interest avoided.
