Alberta Consumer Proposal

Consumer debt levels have increased across the country. According to Statistics Canada, in Q2 of 2022, the average debt amount in Canada, excluding mortgages, is $46,577.

While this is indeed troubling, several provinces currently are above the national average and unfortunately, Alberta leads the country with an average debt load of over $59,869, 28.5% above the national average. While this is down from earlier in the decade, it has caused one of the highest insolvency increases in the country.

Insolvency & Consumer Proposal Statistics in Alberta

• Consumer Proposal
• Bankruptcy

02,0004,0006,000

4,123742

202120222023202420252026

See the numbers

Quarter	Consumer Proposal	Bankruptcy
Q1 '21	2,851	781
Q2 '21	2,937	769
Q3 '21	2,670	598
Q4 '21	2,806	651
Q1 '22	2,896	587
Q2 '22	3,289	640
Q3 '22	3,117	558
Q4 '22	3,119	589
Q1 '23	3,844	655
Q2 '23	3,787	667
Q3 '23	3,665	627
Q4 '23	4,053	623
Q1 '24	3,966	619
Q2 '24	4,232	668
Q3 '24	4,172	714
Q4 '24	4,033	586
Q1 '25	4,186	605
Q2 '25	4,145	719
Q3 '25	4,125	616
Q4 '25	3,805	675
Q1 '26	4,123	742

Source: ic.gc.ca

• Consumer Proposal
• Bankruptcy

010K20K30K

29,5457,576

202120222023202420252026

See the numbers

Quarter	Consumer Proposal	Bankruptcy
Q1 '21	16,504	7,320
Q2 '21	15,696	7,801
Q3 '21	14,909	6,740
Q4 '21	15,928	7,071
Q1 '22	17,178	5,975
Q2 '22	18,776	6,510
Q3 '22	19,579	6,281
Q4 '22	20,065	5,820
Q1 '23	23,460	6,265
Q2 '23	24,279	6,945
Q3 '23	24,043	6,428
Q4 '23	25,235	6,578
Q1 '24	27,036	6,849
Q2 '24	27,337	7,745
Q3 '24	27,341	7,247
Q4 '24	26,541	7,199
Q1 '25	27,241	6,984
Q2 '25	27,314	7,800
Q3 '25	28,469	7,787
Q4 '25	27,144	7,718
Q1 '26	29,545	7,576

Source: ic.gc.ca

What Is an Alberta Consumer Proposal?

A consumer proposal is an agreement made on your behalf with your creditors to settle your debts and create a schedule to pay them off. Consumer proposals are binding legal agreements that clear much of what you owe and set you up with an affordable way to pay the amount of debt your creditors have not forgiven. To qualify for a consumer proposal in Alberta, you must:

• be unable (for any reason) to make your payments as they become due, or you stop making your payments as they come due

• owe less than $250,000 to your creditors ($500,000 for married couples)

• have an insufficient amount of assets that can be used to satisfy your debt

• hire a licensed bankruptcy trustee to mediate with creditors on your behalf

An approved consumer proposal becomes binding on all your creditors if creditors representing at least 51 percent of your total indebtedness agree to the plan.

Alberta Consumer Proposal Pros and Cons

Pros

• The fees and other costs associated with a consumer proposal are far less than those associated with bankruptcy for many Canadians.
• Debt collectors will stop harassing you when you sign a consumer proposal.
• Your physical assets are protected in a consumer proposal.
• A consumer proposal forces obstinate creditors to work with you when lenders representing 51% of your debt agree to the plan.

Cons

• Though more affordable than a bankruptcy, a consumer proposal has the same negative effect on your credit as a bankruptcy, and it remains on your credit report for up to seven years.
• If 51 percent of your creditors deny the proposal, it does not go into effect.
• Bankruptcy trustees are required to pay your creditors as much as possible.

Find Out More about a Consumer Proposal in Alberta

You should know that a consumer proposal is not the only option for settling your debt for less than what you owe.

In fact, a quality debt settlement program or credit counselling can provide many of the same results without as negative an impact on your credit. Fill out the quick debt relief form for more information and find out whether or not a consumer proposal is right for you.

(Per 1,000 Population Aged 18 Years and Older)

Alberta

	'20	'21	'22	'23	'24
Insolvency	3.8	3.9	4.3	5.0	5.1
Bankruptcy	1.1	0.8	0.7	0.7	0.7
Proposal	2.8	3.2	3.6	4.3	4.4

Calgary

	'20	'21	'22	'23	'24
Insolvency	3.5	3.4	3.4	3.9	3.8
Bankruptcy	1.0	0.7	0.6	0.6	0.5
Proposal	2.5	2.7	2.8	3.4	3.2

Edmonton

	'20	'21	'22	'23	'24
Insolvency	3.9	3.9	3.9	4.5	4.7
Bankruptcy	1.0	0.7	0.6	0.7	0.7
Proposal	2.9	3.2	3.3	3.8	4.0

Lethbridge - Medicine Hat

	'20	'21	'22	'23	'24
Insolvency	4.4	4.4	4.9	5.4	5.1
Bankruptcy	1.0	0.8	0.9	0.7	0.8
Proposal	3.5	3.6	4.0	4.3	4.4

Red Deer

	'20	'21	'22	'23	'24
Insolvency	5.1	5.4	4.1	6.5	5.2
Bankruptcy	1.4	0.9	0.6	0.8	0.8
Proposal	3.7	4.5	2.8	5.7	4.5

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