Consumer Proposal Guide
The Independent Resource for Canadians.
Everything You Need to Know About Filing a Consumer Proposal in Alberta.
Stop the confusion. Get the facts, download the forms, and file directly with a Trustee.
Articles
Consumer Proposal vs. Bankruptcy in Alberta: The Surplus Income Trap
Debt Consultants vs. Insolvency Trustees: Avoid the $2,500 Fee
Alberta Insolvency Exemptions 2025: Keep Your Truck
How to Rebuild Credit After a Consumer Proposal (R7 Rating)
4 Documents You Need Before Calling a Trustee in Alberta
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"Green Light" Eligibility Test
The Insolvency Roadmap (PDF)
Trustee Interview Questions
Document Gathering Checklist
The Independent Filing Kit
For the Action Taker. "I want the forms and spreadsheets to file my proposal today."
"Green Light" Eligibility Test
The Insolvency Roadmap (PDF)
Trustee Interview Questions
Document Gathering Checklist
Asset & Liability Smart-Sheet
"Form 79" Budget Template
Hardship Letter Template
The Total Financial Reset Bundle
For the Future Planner. "I want to file, but I also want to buy a house in 3 years."
"Green Light" Eligibility Test
The Insolvency Roadmap (PDF)
Trustee Interview Questions
Document Gathering Checklist
Asset & Liability Smart-Sheet
"Form 79" Budget Template
Hardship Letter Template
eBook: "The Phoenix Strategy"
Credit Rebuilding Tracker
Curated Resource List
Consumer Proposal vs. Bankruptcy in Alberta: The Surplus Income Trap
Earning Over $2,666? Why Bankruptcy Might Cost You Double
If you live in Alberta and you’re drowning in debt, the word Bankruptcy sounds terrifying. But for many Albertans with steady jobs, it’s not just scary—it’s mathematically the wrong choice.The reason lies in a government rule called Surplus Income.
In 2025, the Office of the Superintendent of Bankruptcy (OSB) sets specific income thresholds. These numbers determine how much you are "allowed" to earn before the government penalizes you for going bankrupt.
The Magic Number: $2,666 (Single Person)
If you are a single person and your net (take home) pay is higher than the current threshold (approximately $2,666/month), bankruptcy becomes expensive. For every dollar you earn above that limit, you must pay 50% of it to your creditors.
The Scenario:
• You take home $4,000 a month.
• The Surplus Limit is approx. $2,666.
• You are $1,334 over the limit.
The Bankruptcy Penalty: Because you have surplus income, you must pay 50% of that surplus ($667/month) into your bankruptcy. Furthermore, your bankruptcy is automatically extended from 9 months to 21 months.
• Total Cost: $14,000 + loss of assets.
The Consumer Proposal Advantage: A Consumer Proposal is different. It is a fixed negotiation, not a punishment on your income.
• You could offer your creditors $300 per month for 60 months.
• Total Cost: $18,000.
• The Win: You keep your assets (like your truck or tax refunds) and your payment never changes, even if you get a raise, work overtime, or get a bonus.
The Bottom Line: If you have a good job but bad debt, bankruptcy punishes your income. A Consumer Proposal protects it. Don't sign anything until you’ve run the numbers.