A consumer proposal after divorce or separation is often the best way to manage debt when two households are suddenly living on the same income.
Many people face credit card balances, joint loans, or bills left behind after the breakup, and a consumer proposal can reduce what you owe and make repayment realistic.
This creates stability during a stressful time and gives you a plan to rebuild financially on your own.
When a relationship ends, the financial impact can be as stressful as the emotional one.
Many people discover that debts they managed together are overwhelming when paid alone. If you’re exploring your options, a good starting point is understanding how a consumer proposal in Ontario can restore financial stability.
Debt becomes hard to manage after a separation when:
A consumer proposal helps by replacing uncertainty with a clear, legal plan that fits your new budget. To see how interest and collections are paused, visit how interest stops in a proposal.
A proposal lets you settle unsecured debts for less than you owe and spread repayment over up to five years.
This can make a major difference when you are adjusting to life after separation, especially if your expenses increased while income dropped. If you’re unsure whether you qualify, read our guide on who qualifies for a consumer proposal.
A proposal helps by:
This creates a manageable path forward and helps you rebuild independently. For a full overview, visit how to file a consumer proposal.
Many people are surprised to learn that banks do not honour separation agreements.
Even if your ex-partner promises to pay a joint debt, the creditor will still hold both of you responsible. Our detailed page on secured and unsecured debt explains why certain joint debts qualify.
A consumer proposal helps with joint debt because:
This allows you to move forward without being tied to the other person’s financial behaviour.
More examples of how proposals affect families appear in our page on successful consumer proposal clients.
The end of a relationship often leads to new debt—moving costs, legal bills, and setting up a new home. Our guide to how proposals work explains how these debts can be included.
A proposal can include these types of debt when:
A proposal helps you clean up these debts and regain stability more quickly. For details on timelines, see the consumer proposal recovery timeline.
Many separating couples try to divide debt based on fairness, but creditors do not follow those agreements.
If you’re unsure which option is best for your situation, our page on consumer proposals vs. bankruptcy may help.
A proposal is usually the better choice when:
A proposal lets you separate your finances cleanly and focus on rebuilding your life.
This consumer proposal calculator shows an approximate of how much you could save.
If you’re feeling overwhelmed by debt and not sure where to start, the best thing you can do is talk to someone who understands.
Call now and speak directly with me — Kelly Dey — for clear, honest advice that’s tailored to your situation. There’s no pressure and no judgment. We’ll look at your options together and create a plan that helps you breathe again. Getting started is easier than you think, and one simple conversation can put you back in control of your money and your life.
Let’s take that first step today, call 905-721-7506.
A. No. A proposal is filed individually, even if the debt is joint. Your ex does not participate in your filing and does not affect your approval. You are settling only your legal responsibility for the debt. The creditor may still pursue your ex for their share, but you are protected from further action.
A. Yes. Joint credit cards, lines of credit, and loans can all be included. Even if your ex ignores the debt, you can still eliminate your portion through a proposal.
The bank must respect your filing and cannot chase you for the remaining balance, interest, or late fees.
A.No. Support payments are not part of a consumer proposal. You continue paying them as normal, and they do not impact your eligibility.
However, if your support payments reduce your available income, they help your trustee calculate an affordable monthly payment.
A. A proposal cannot stop family-court issues, but it can eliminate unsecured debt that fuels those disputes. Once the proposal is filed, creditors cannot sue you for debt, freeze your bank account, or garnish your wages.
This reduces financial pressure and makes it easier to deal with family matters separately.
A. Yes. Separation agreements do not prevent you from filing. In fact, many people file afterward because the agreement does not reduce debt—it only assigns who pays what.
A proposal deals with the actual debt legally, which is something a separation agreement cannot accomplish.
Insolvency Trustee – Kelly Dey
If you’re feeling weighed down by money or debt issues, give me a call at 905-721-7506 and lets just have conversation.
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Michelle A.
3 days ago
★★★★★ The breakup left me with joint credit cards I couldn’t manage alone. The proposal cut the debt and stopped the calls. I finally feel stable again.
Jordan P.
1 week ago
★★★★★ I was drowning after the separation. The proposal gave me affordable payments and let me move forward without depending on my ex.
Samantha W.
2 weeks ago
★★★★★ My ex stopped paying a joint loan and the bank came after me. The proposal protected me and reduced the balance. Total relief.
Craig T.
3 weeks ago
★★★★★ I took on a lot of debt setting up a new place. The proposal rolled everything together and gave me breathing room for the first time in months.
Elena M.
1 month ago
★★★★★ This service helped me rebuild after a difficult separation. My payments dropped and the stress finally went away. Highly recommended.
Rise Above Your Debt!
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