Consumer proposals in Ontario
A consumer proposal in Ontario can reduce your debt by up to 80% while protecting your personal assets. Speak with our Licensed Insolvency Trustees today and find your path to a debt-free future.
Safe, secure & confidential
Safe, secure & confidential
What is a consumer proposal in Ontario?
A consumer proposal in Ontario is a legally binding agreement between you and your creditors, where you repay only a portion of what you owe. When you file a consumer proposal through a Licensed Insolvency Trustee (LIT), your trustee negotiates with your creditors on your behalf to reach a repayment plan that works for all parties. It’s one of the best ways to take back financial control while keeping your assets and avoiding the lasting effects of bankruptcy.
What are the advantages of a consumer proposal in Ontario?
There are many advantages to consumer proposals in Ontario, including:
- Low monthly payments
A consumer proposal can reduce the total amount you owe by up to 80% and spread it out into affordable, interest-free monthly installments for up to five years. - You get to keep your assets
Unlike bankruptcy, a consumer proposal lets you keep important assets like your home, car, and savings, so you can protect the things that matter the most. - Interest and collection calls stop
Once a consumer proposal is filed, all interest charges and collection actions are put on hold, and you’re able to focus on paying off your debt. - You can avoid bankruptcy
Consumer proposals are the best bankruptcy alternative, offering legal protection while helping you repay a portion of your debts on terms you can afford. - You’re offered a fresh start
Once you complete your consumer proposal in Ontario, the remaining unsecured debts included in it are legally written off – no financial pressure.
How to file a consumer proposal in Ontario
Filing a consumer proposal in Ontario is simpler than many people think. Here’s the process:
- Speak to a Licensed Insolvency Trustee (LIT)
Only an LIT can file a consumer proposal. They’ll review your finances, explain your options, and confirm if it’s right for you. - Design a repayment plan
With your trustee, you’ll create an affordable plan, usually repaying only a portion of what you owe in fixed monthly payments. - File and get protection
Your trustee will submit your consumer proposal to creditors. They have 45 days to vote. If accepted, all collection calls, interest freeze, and wage garnishments will be stopped. - Finish and get a fresh start
Once payments are complete, the remaining unsecured debts in the proposal are legally written off.
See how much you could save with a Consumer Proposal in Ontario
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?Browse debt options in Canada
Why choose us for consumer proposals in Ontario?
Our Licensed Insolvency Trustees can provide a customised consumer proposal that could shrink your debt by up to 80%.
Our multilingual team offers debt support in Farsi, Portuguese, Italian, Tamil, and more, so you can feel comfortable every step of the way.
With offices in nine provinces, we offer in-person debt support across Canada—from Atlantic provinces to Ontario to British Columbia.
Ontario consumer proposal FAQs
How long does a consumer proposal last in Ontario?
A consumer proposal in Ontario typically lasts up to five years, but you can pay it off sooner if your finances improve. The repayment period is based on what you can realistically afford, making it a flexible option for people who want to reduce their debt without the long-term impact of bankruptcy.
How much does a consumer proposal cost in Ontario?
The cost of a consumer proposal in Ontario depends on your total debt, income, and repayment terms. There are no upfront fees; your Licensed Insolvency Trustee’s costs are included in the monthly payment agreed with your creditors. Because the consumer proposal reduces the total amount you owe, most people pay significantly less than their original debt over the term.
What are the disadvantages of a consumer proposal in Ontario?
While a consumer proposal offers many benefits, there are a few drawbacks to consider:
- It affects your credit rating (usually an R7 rating during repayment).
- It only covers unsecured debts such as credit cards and personal loans, not secured debts like mortgages.
- Creditors must agree to the proposal for it to move forward.
Even with these limitations, many people choose a consumer proposal because it allows them to keep assets, stop interest, and repay only a portion of what they owe.
How much debt do I need to have before I can apply for bankruptcy in Ontario?
You need to have a minimum of $1,000 of debt in order to be considered for bankruptcy, although, bankruptcy is only usually considered for those with debts totalling much more than this amount. Speak to your Trustee about the best course of action for your unique circumstances.
Do I get to keep my house?
If you file for personal bankruptcy in Ontario, whether or not you lose your home is all dependent on the amount of equity that is attached to it. The Ontario Execution Act states that, in order to keep your home it must not have more than $10,000 of equity. If it does go over that amount, then it may be seized in the bankruptcy process.
Take back control with a consumer proposal in Ontario
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
