Consumer Proposal London
Reduce what you owe, keep your assets, and start moving forward with a consumer proposal in London. Our Licensed Insolvency Trustees in London offer free, confidential consultations to help you understand whether a consumer proposal is right for you.
The sooner you act, the more options you have.Â
Safe, secure & confidential
What is a consumer proposal in London?
A consumer proposal is a federally regulated, legally binding agreement to repay a portion of what you owe. It’s filed through a Licensed Insolvency Trustee (LIT) under the Bankruptcy and Insolvency Act, and it can reduce your unsecured debt by up to 80%.
Unlike bankruptcy, you keep your home, car, and other assets. Unlike debt consolidation, there’s no new loan to take on and no minimum credit score required. You make one fixed monthly payment, interest-free, for up to five years.
It applies to most unsecured debts: credit cards, payday loans, personal loans, lines of credit, CRA tax debt, and certain student loans. Once filed, all collection calls, interest charges, and wage garnishments stop.
Â
Is a consumer proposal right for you in London?
You may qualify for a consumer proposal in London if:Â
- Â You owe between $1,000 and $250,000 in unsecured debt (excluding your mortgage)
- Â You are a Canadian resident or own property in Canada
- Â You are an individual (not a corporation)
- Â You are at least 18 years old
- Â You cannot fully repay your debts as they fall due, but you can afford some monthly payment
If you’re not sure whether you qualify, our London team will assess your situation at no cost.
Â
We've helped 100s of London residents file consumer proposals
Over 52,800 Ontarians filed for insolvency in 2025.
Of this, over 42,000 chose a consumer proposal to become debt-free.
Of this, over 42,000 chose a consumer proposal to become debt-free.
Consumer proposal vs bankruptcy vs debt consolidation London
For many people in London dealing with large amounts of unsecured debt, a consumer proposal can be a practical way to reduce what they owe while keeping important assets like their home or car. It also provides legal protection from creditors, giving you breathing room to get your finances back on track. It’s one of the most popular debt relief options in Ontario because it helps balance debt reduction with asset protection. That said, everyone’s situation is different, so it’s important to look at all your options before making a decision. Understanding what’s available can help you choose the solution that’s right for your financial future.
| Consumer proposal | Bankruptcy | Debt consolidation | |
|---|---|---|---|
| Reduces debt? | Yes, up to 80% | Yes, most debt eliminated | No |
| Requires new loan? | No | No | Yes |
| Interest rate | 0% | 0% | Variable, often high |
| Stops collection calls? | Yes, immediately | Yes, immediately | No |
| Impact on assets | Keep all assets | May lose assets | Keep all assets |
| Impact on credit score | R7 for 3 years post-completion or 6 years after filing | R9 for 6-7 years post-discharge | Depends on payments |
| Government-regulated? | Yes | Yes | No |
What are the benefits of a consumer proposal in London?
Consumer Proposals in London are a practical way to get out of debt while keeping your financial stability. Here’s how this government-regulated debt relief solution can help you take back financial control:
- Reduce your debt by up to 80%. Creditors often accept significantly less than the full balance owed, helping you settle debt faster.
- Stop collection calls and wage garnishments immediately. Legal protection begins the moment your proposal is filed with a Licensed Insolvency Trustee.
- Keep your home, car, and assets. Unlike bankruptcy, a consumer proposal doesn’t require surrendering your property.
- Pay 0% interest. All interest charges are frozen once the proposal is filed, so every payment reduces your principal.
- One affordable monthly payment based on what you can realistically afford, spread over up to five years.
- No credit check required to qualify. Eligibility is based on your debt situation, not your credit score.
- Over 98% acceptance rate. Consumer proposals are a proven, high-success debt solution trusted across Ontario.
- Government-regulated and legally binding. Your proposal is filed under the Bankruptcy and Insolvency Act, giving you full legal protection.
How to file a consumer proposal in London: step-by-step
- Â Step 1: Free, confidential consultation Meet with our Licensed Insolvency Trustee in London to review your debts, income, and assets. No obligation, no judgment. The consultation takes less than an hour and is completely free.
- Step 2: Review your options Your LIT will walk you through every available debt relief option, not just consumer proposals, to ensure you receive the right solution for your situation.
- Step 3: Draft your proposal If a consumer proposal is the right route, we prepare the proposal documents and calculate a fair monthly payment based on what you can realistically afford.
- Step 4: File with the government We submit the proposal to your creditors via the Office of the Superintendent of Bankruptcy. Collection calls, interest, and wage garnishments stop immediately.
- Step 5: Creditors vote Creditors have 45 days to review and vote. If creditors holding the majority of the debt accept, the proposal becomes binding on all of them, including those who voted against.
- Step 6: Make monthly payments One simple payment each month to your LIT, who distributes the funds to your creditors. Payments continue for up to five years.Â
- Step 7: Complete the programme Two mandatory financial counselling sessions help you rebuild your finances. Once all payments are made, you receive a Certificate of Completion and are legally debt-free.
Why choose Harris & Partners for your consumer proposal in London?
We’ve been helping Canadian families get out of debt since 1964. With us, there are no intimidating offices or confusing legal jargon, just honest advice from people who genuinely care about your financial stability.
As one of Canada’s largest insolvency filers, you can count on our 100+ years of combined experience and strong creditor relationships to get your consumer proposal approved. We’ll get you on a path to living debt-free.
London residents who file a consumer proposal with us can legally reduce what they owe by up to 80%, paying off the remainder in affordable instalments. Give us a call and we’ll find the right consumer proposal terms for your situation.
See how much you could save with a Consumer Proposal in London
Your Potential Debts:
Your monthly repayments over a 60-month period would be
Before Help
$1409
After Help
$210
Monthly payments are determined based on individual financial factors
How Much Could I Save?
What types of debt are covered by consumer proposals in London?
A consumer proposal lets you roll most unsecured debts into a single, affordable monthly payment. If any of the following are keeping you up at night, a consumer proposal could be the fresh start you need.
- Credit card debt – Get out from under high-interest balances across multiple cards
- Payday loans and wage garnishments – Break the borrowing cycle and protect your paycheque
- Personal loans and lines of credit – Combine what you owe to banks or private lenders into one payment
- CRA tax debt – Settle income tax arrears, GST/HST owing, and CERB overpayments
- Student loan debt – Eligible once seven or more years have passed since you finished school
- Medical bills – Address lingering healthcare costs where applicable
- Utility arrears – Include unpaid hydro, gas, or other utility balances
Your mortgage and car loan are secured debts, so they won’t be part of the proposal. The good news? Filing gives you the breathing room to stay current on those payments and hold onto what matters most.
Our closest office to London
We have offices across Ontario; the closest one to you is our Brantford office:
446 Grey St, Brantford, ON N3S 7L6, Canada
London consumer proposal FAQs
Can I include CRA tax debt in a consumer proposal in London?
Yes. In most cases, income tax debt owed to the CRA can be included in a consumer proposal, just like credit card debt.
The CRA is treated as an unsecured creditor, so it’s grouped with your other debts and votes on your proposal like any bank would. This matters because CRA debt racks up interest and penalties fast, and the CRA can garnish wages or freeze bank accounts — filing a proposal stops that immediately.
Personal income tax, GST/HST owed personally, and CPP/EI overpayments are generally eligible. Payroll source deductions and GST/HST a business collected in trust are treated differently, since they’re trust funds, not personal debt.
How do I do a consumer proposal in London?
You can only file through a Licensed Insolvency Trustee (LIT) — not on your own or through a debt consultant.
- Book a free LIT consultation to review your finances.
- The trustee assesses your debt, income, assets, and expenses to confirm it’s the right fit.
- They draft your proposal—an offer to repay part of what you owe, often over up to 5 years.
- It’s filed with the Office of the Superintendent of Bankruptcy, triggering an immediate stay on collections and garnishments.
- Creditors vote within 45 days; most proposals are accepted.
- You make fixed monthly payments to the trustee, who pays your creditors.
- You complete two mandatory credit counselling sessions.
- After your final payment, you’re debt-free on all included debts.
How much does a consultation with a LIT cost in London?
A first consultation with a Licensed Insolvency Trustee is almost always free, with no obligation to proceed. This is standard practice across Ontario, including London.
At that meeting, the trustee will review your total debt, income, and assets, walk you through every option (not just a consumer proposal; also debt management plans, bankruptcy, or budgeting changes), and give you a realistic sense of what monthly payments could look like.
LITs are federally regulated and required to explain all your options, not push one solution. If someone charges an upfront fee just to “assess” your debt or pressures you to decide quickly, treat that as a warning sign. The Government of Canada specifically cautions against unlicensed debt consultants charging for advice that a real LIT gives for free.
How much does a consumer proposal cost in London?
There’s typically no large upfront fee. Costs are built into your monthly payments, set based on what you can actually afford.
Your payment amount is calculated from your income, essential expenses, household size, and the assets you’d otherwise risk losing in bankruptcy. That payment already includes the trustee’s fee, which is regulated by law rather than negotiated—you won’t get a separate bill.
Does a consumer proposal affect your credit rating in London?
Yes, but the impact is smaller and shorter-lived than most people expect and far less damaging than bankruptcy.
While active, your proposal shows as an “R7” on your credit report, signalling a formal repayment arrangement. Bankruptcy shows as an “R9″—the lowest rating—and can stay on file up to 7 years.
Once you make your final payment, the R7 notation is removed 3 years later, no matter how long the proposal lasted. Your score may dip at first (often it’s already affected by missed payments before filing), but many Londoners see it recover once payments become consistent and collection calls stop.
In short: it’s a temporary mark, not a permanent one, and a real path back to good credit.
Browse debt options in Canada
Take back control with a consumer proposal in London
It’s never too late to get help with your debt. Book a free, no-obligation consultation with our Licensed Insolvency Trustees in Ontario to get started.
It's never too late to obtain debt help. Book your free consultation today
- Phone number
- 800-268-8093
- hello@harrispartners.ca