Consumer Proposal Toronto
A consumer proposal can cut your unsecured debt by up to 80%, stop creditor calls the day it’s filed and let you keep your home and car.
Our Licensed Insolvency Trustees help people across Toronto, from downtown and Leslieville to the Danforth, East York and the Beaches, with free, confidential consultations at our office on Danforth Avenue.
The sooner you act, the more options you have.
Safe, secure & confidential
How does a consumer proposal work in Toronto?
A consumer proposal in Toronto works through a Licensed Insolvency Trustee (LIT), who files a legally binding offer to your creditors to repay part of your unsecured debt. It can cut what you owe by up to 80%, and the federal Bankruptcy and Insolvency Act sets the same rules across Canada.
You make one fixed, interest-free monthly payment for up to five years and keep your home, car and other assets. Once your trustee files, collection calls, interest charges and wage garnishments stop.
Who qualifies for a consumer proposal in Toronto?
You qualify for a consumer proposal if you owe between $1,000 and $250,000 in unsecured debt and can’t repay it in full but can afford a regular monthly payment.
You also need to:
- Be an individual, not a corporation.
- Live in Canada or own property in Canada.
- Be at least 18 years old.
The $250,000 limit excludes your mortgage. If you don’t qualify, see our other debt relief options in Toronto, or we will assess your situation for free.
What do clients say about our consumer proposal service?
Clients rate Harris & Partners 4.8 out of 5 from more than 2,200 Google reviews and “Excellent” on Trustpilot, for clear advice and judgment-free support.
Based on OSB data, more than 4 in 5 people in Toronto choose a consumer proposal over bankruptcy.
Among those facing insolvency, it's how most clear debt and keep their home.
Among those facing insolvency, it's how most clear debt and keep their home.
Consumer proposal vs bankruptcy vs debt consolidation: Which is right for you?
A consumer proposal in Toronto reduces your debt while you keep your assets, bankruptcy clears more debt but may cost you assets, and debt consolidation is a new loan that doesn’t reduce what you owe.
The right choice depends on your income, assets, and total debt, and a trustee will walk you through all three.
| Consumer proposal | Bankruptcy | Debt consolidation | |
|---|---|---|---|
| Reduces debt? | Yes, up to 80% | Yes, most debt cleared | No |
| New loan needed? | No | No | Yes |
| Interest | 0% | 0% | Variable, often high |
| Stops collection calls? | Yes, on filing | Yes, on filing | No |
| Your assets | Keep all assets | May lose some assets | Keep all assets |
| Credit report | R7 until 3 years after completion or 6 years after filing, whichever comes first | R9 for 6–7 years after discharge (first bankruptcy) | Depends on repayment history |
| Government-regulated? | Yes | Yes | No |
How could a consumer proposal help you in Toronto?
A consumer proposal in Toronto could cut your debt, stop creditors chasing you, and let you keep your assets, all through one interest-free monthly payment.
- Reduce your debt by up to 80%: Creditors often accept significantly less than the full balance.
- Stop creditors the day you file: Collection calls and wage garnishments must stop, with legal protection under the Bankruptcy and Insolvency Act.
- Keep your home, car and other assets: You don’t surrender property, unlike in bankruptcy.
- One interest-free payment every month: Interest freezes on filing, and your trustee sets the payment around your budget, spread over up to five years.
- Qualify easily, with a high approval rate: There’s no credit check, and 9 in 10 proposals we file are accepted by creditors.
How to file a consumer proposal in Toronto
A consumer proposal in Toronto has four main stages, from a free consultation with a Licensed Insolvency Trustee to a Certificate of Full Performance once your payments and counselling are complete.
- 1. Book a free consultation: A trustee reviews your debts, income and assets and explains every option, not just consumer proposals. It takes under an hour, and you have no obligation to commit.
- 2. Draft and file your proposal: If a proposal suits you, we prepare it with a monthly payment you can afford and file it with the Office of the Superintendent of Bankruptcy. Collection calls, interest and wage garnishments stop immediately.
- 3. Creditors vote: Creditors have 45 days to respond. If creditors holding the majority of your debt by value accept, the proposal binds all of them.
- 4. Make your payments and finish the program: You pay your trustee once a month for up to five years and attend two financial counselling sessions. After your last payment, you receive a Certificate of Full Performance and the included debts are cleared.
Why choose Harris & Partners for your consumer proposal in Toronto?
We’ve helped Canadians get out of debt since 1964, with plain-English advice from people who care about your financial stability. There are no intimidating offices and no legal jargon.
We’re one of Canada’s largest insolvency filers, with more than 100 years of combined trustee experience and long-standing creditor relationships that help get proposals approved.
Toronto residents who file with us can legally reduce their unsecured debt by up to 80% and repay the rest in affordable instalments.
Why choose Harris & Partners for your consumer proposal in Toronto?
How much could you save with a consumer proposal?
In this example, a consumer proposal cuts monthly repayments on $38,290 of debt from $1,409 to $210 over 60 months.
Repayments over 60 months
Before help
$1,409
After help
$210
Example only; your payment depends on your income, assets and debts.
Estimate your monthly payment
What types of debt are covered by consumer proposals in Toronto?
A consumer proposal can include most unsecured debts, combining them into one interest-free monthly payment:
- Credit cards – balances across any number of cards
- Payday loans – ending the borrowing cycle
- Personal loans and lines of credit – from banks or private lenders
- CRA tax debt – income tax arrears, GST/HST you owe personally and CERB overpayments
- Student loans – once seven years have passed since you left school
- Medical bills and utility arrears – including unpaid hydro and gas
Mortgages and car loans are secured debts, so they stay outside the proposal. Filing does stop wage garnishments from your unsecured creditors, which makes it easier to keep up those secured payments.
Where is our Toronto office?
Our Toronto office is at:
658 Danforth Ave, Suite 205, Toronto, ON M4K 3S8.
Meet your Licensed Insolvency Trustee
Jay Harris is Managing Partner of Harris & Partners and a Licensed Insolvency Trustee.
He has been with the family firm since 1982, qualified as a Chartered Accountant in 1984 and became a founding partner of Harris & Partners Inc. in 1987.
He’s a Fellow of Chartered Professional Accountants Ontario (FCPA, FCA) and a Chartered Insolvency and Restructuring Professional (CIRP)
Address
658 Danforth Ave, Suite 205, Toronto, ON M4K 3S8
How to get there
By subway: Take Line 2 (Bloor–Danforth) to Pape station, a short walk along Danforth Avenue.
By car: From the Don Valley Parkway, exit at Bloor Street/Danforth Avenue and head east along the Danforth
Office hours
Monday to Friday: 09:00-17:00 (by appointment only)
Toronto consumer proposal FAQs
These answers cover the questions Toronto residents ask most about consumer proposals, from tax debt and credit ratings to cost.
Which Harris & Partners office is best for a consumer proposal in Toronto?
The Danforth office is the best fit for most people in downtown Toronto, the east end and East York, while the North York office at Yonge Street and Sheppard Avenue is closer for anyone in the north of the city. Both offices offer free consultations by appointment.
Do I have to go to court for a consumer proposal in Toronto?
You won’t normally have to go to court for a consumer proposal in Toronto. After your trustee files it with the Office of the Superintendent of Bankruptcy and creditors accept it, a 15-day window opens for the official receiver or another interested party to request a court review; if nobody does, the proposal counts as court-approved.
Can a consumer proposal in Toronto include CRA tax debt?
Tax debt owed to the CRA can usually go into a consumer proposal in Toronto, including personal income tax, personal GST/HST and CPP or EI overpayments. It’s dealt with alongside your credit cards and loans, the CRA votes as an ordinary unsecured creditor, and filing stops CRA garnishments and frozen bank accounts.
Will a consumer proposal in Toronto ruin my credit?
A consumer proposal in Toronto lowers your credit score for a limited time rather than ruining it. It adds an R7 rating, which is less severe than bankruptcy’s R9, and the credit bureaus remove it three years after your last payment or six years after filing, whichever comes first. Many people’s scores begin improving once their payments are steady.