Joint Consumer Proposal — Key Advantages and Disadvantages

How can you file a joint consumer proposal? What are its advantages and disadvantages? Well, these are some common questions that many people have in their mind.

Couples who want share the burden of debts are eligible to file a joint consumer proposal. It’s slightly difficult to understand its meaning. Both the parties that wish to file it, must have “all or substantial” same debts. There is no legal definition of “substantial” under the eyes of law. This process starts when two people, with mutual consent, file consumer proposal, jointly.

Who can File Joint Consumer Proposal?

The process of filing a joint consumer proposal in Canada is similar to anywhere else. You can file it with an individual who holds certain debts. What is important to know is that you both must meet the specific requirements and standards. However, bankruptcy trustees may not allow filing joint consumer proposal unless both the parties share at least 90% of the debts.

There are certain ways in which one can easily file a joint consumer proposal. Let’s understand them broadly:

1. Legally Married Couple: Legally married couple are eligible to file it together. It makes sense, as most likely, if the debts will accumulate, both of them will have to pay it in near future. In addition, if you file it together, you’ll need to pay administrative charges only once.

2. Business Partners: It’s appropriate enough in the eye of law to file it with your business partner, as you probably will have loans and credits on your name. Your proposal can’t be accepted if either of the parties have a lot personal debt.

3. Parent and Child: Parents and children are often interconnected with finances; therefore, they can easily file for joint consumer proposal.

Advantages and Disadvantages

There are both advantages and disadvantages of filing Joint Consumer Proposal. Before filing it, you must know whether it’s right for you or not.


· If you jointly file, it increases the maximum amount of debt you’re allowed to have from $250,000 to $500,000.

· It doesn’t cost too much. This means that more income can be use for paying the debts.


· As both the person are responsible for paying the debts, if due to any reason one stops, the other partner will be liable to pay the complete debt payment.

· If you can’t make the payment your consumer proposal will be annulled.

Joint or single, consumer proposals are meant for very specific situations. Only in special cases when the person is unable to handle the debt, this option comes to life. It is considered to be a serious financial decision in a debt situation. This step is made for those who are in the need of serious financial help.