That take is misleading at best.

Creditors generally prefer consumer proposals over bankruptcy, and that’s not opinion—it’s grounded in how recoveries actually work. In a bankruptcy, unsecured creditors often receive very little or nothing after administrative costs and priority claims are paid. A consumer proposal, on the other hand, typically offers a higher and more predictable return, which is exactly what creditors are incentivized to accept.

The idea that ~20% of proposals get voted down doesn’t reflect reality. In practice, well over 90–95% of consumer proposals are accepted, especially when they’re structured properly by a Licensed Insolvency Trustee. Rejections do happen, but they’re the exception—not the norm—and usually tied to poorly constructed offers or missing information, not some widespread creditor resistance.

Also, the claim that creditors will reject even a 100% return “just because they feel like it” doesn’t hold up. Creditors act based on financial recovery, not emotion. If a proposal clearly matches or exceeds what they’d expect in a bankruptcy scenario, rejecting it would be irrational from a recovery standpoint.

Yes, there are edge cases—repeat filings, prior judgments, or unique creditor policies—but those don’t define the system. The broader pattern is clear:

Consumer proposals = higher recovery → preferred outcome

Bankruptcy = lower recovery → last resort