A consumer proposal in Ontario is a simple, government-approved way to reduce what you owe and protect your income. To use this solution, you must meet a few basic rules. The good news is almost everyone can qualify.
Here’s what you need to know in clear, easy steps.
To qualify for a consumer proposal, you must meet several simple conditions.
If you meet these points, you can likely file a proposal and get protection right away.
A consumer proposal is available to people who owe too much to pay back on their own but not so much that bankruptcy is the only option. To qualify, you must:
If you owe more than $250,000, other options exist, and the trustee will explain them in simple language.
You do not need a high income to qualify. You simply need enough steady income to make one monthly payment. The trustee helps you set a payment that fits your budget.
As long as you can afford a fair amount each month, you will likely qualify for a proposal.
Most unsecured debts can be included in a consumer proposal. This often includes:
You do not need perfect records. Our trustees will work with you to help gather the details.
All unsecured debts, credit cards and unsecured loans can be applied to a consumer proposal, getting you completely debt free in 5 years or less!
There are only a few situations where someone may not qualify. You cannot file if:
If any of these apply, the trustee will recommend another solution that still protects you.
There are only a few situations where someone may not qualify. You cannot file if:
If any of these apply, the trustee will recommend another solution that still protects you.
★★★★★ As interest rates rose so did our mortgage and bills. We were slowly sinking more and more into debt. When it hit 30,000 we had to do something. YanchDey were local so I gave them a call. Best thing I did in years. Our debt was slashed down to 7k with a monthly payment of $120/month! Thank You YanchDey. Mike Paczek, Pickering
Couples who share debts can file a joint proposal if their financial situations are connected. This often lowers the total monthly payment and makes the process easier. If you and your spouse have mostly joint debts or both want relief, a joint proposal may be a great option.
Many people believe they won’t qualify because their debt feels “too big” or their income feels “too small.”
In reality, consumer proposals were designed for everyday people who need help. As long as you meet the basic rules for residency, debt level, and the ability to make a reasonable payment, you qualify.
★★★★★ When I lost my job we had to use our credit cards. On the advice of a friend I called YanchDey. They got me on a Consumer Proposal, we saved over 22 thousand dollars, we’re very grateful. The plan we did will make us completely debt free in 4 years. Rocco Scipanos
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. To qualify for a consumer proposal in Ontario, you must be facing more debt than you can reasonably repay, but still have a stable enough income to make a reduced monthly payment.
The process is only available through a Licensed Insolvency Trustee and is designed to help individuals who want to avoid bankruptcy while protecting their assets. You generally qualify if you owe between $1,000 and $250,000 (not including a mortgage), live or work in Canada, and can maintain a predictable monthly payment.
Most people meet the requirements because a proposal is intended for everyday financial problems like credit card debt, personal loans, tax debt, and lines of credit, giving you a structured way to settle your debt at a fraction of what you owe.
A. You can qualify for a consumer proposal with as little as $1,000 of unsecured debt, but most Ontarians file when their total debt becomes unmanageable—typically between $20,000 and $80,000.
There is also an upper limit: the program is available as long as your combined unsecured debt does not exceed $250,000, excluding your mortgage.
The key factor is not the exact dollar amount, but whether your debts are growing faster than you can pay them, such as maxed-out credit cards, ongoing interest charges, or collection agency pressure, making a proposal the most realistic path to financial stability.
A. Consumer proposals have one of the highest approval rates of any debt-relief option in Canada, with most proposals in Ontario being accepted by creditors.
Acceptance rates are extremely strong—typically over 95%—because proposals offer creditors a better recovery than they would receive if you filed for bankruptcy. Trustees also structure your proposal so that it is both affordable for you and attractive to creditors, which dramatically increases the likelihood of approval.
Once the proposal is accepted, all interest stops, collections cease, and you begin making one fixed monthly payment that fits your budget.
A. A consumer proposal can be denied, but denial is rare—especially when it’s prepared by an experienced Licensed Insolvency Trustee.
When rejections do happen, it’s usually for reasons such as the offer being too low, incomplete financial information, or creditors believing you can pay more than what is offered. In many cases, creditors simply request a minor adjustment to the payment amount, and your trustee negotiates those changes on your behalf.
The vast majority of proposals are approved after small revisions, giving you a predictable and manageable path to reducing your debt.
A. The “2-2-2 rule” is an informal guideline trustees use to help determine whether a consumer proposal is right for you.
It refers to situations where:
If you meet two or more of these conditions, a consumer proposal may be the most effective way to regain control.
While it’s not a legal requirement, the rule helps identify people who are overextended and need formal debt relief before their situation becomes unmanageable.
A. Absolutely. Self-employed individuals regularly qualify for consumer proposals as long as they can show consistent income to support a fixed monthly payment.
Proposals are especially helpful for self-employed Canadians who are dealing with CRA tax debt, GST/HST arrears, business credit lines, or personal loans used to support the business.
A proposal allows you to keep running your business while eliminating unmanageable debt in a way that protects your assets and gives you a clean financial base to rebuild.
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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Pauline Vorvis
3 days ago
★★★★★ We had 23,000 in credit card debt that I was never going to pay off. My new loan is now $7,000 and pay $195 over three years. Thank you so much.
Randy Singh
7 days ago
★★★★★ My husband’s paycheck was garnisheed, we owed 36,000. The consumer proposal, stopped the garnishment, and reduced our debt to 10,000. So thankful we called.
Debbie Theriault
2 weeks ago
★★★★★ I needed to get out of debt. I still had student-loans after 10 years and was sick of borrowing money. I thought I’d have to file for bankruptcy, but they explained how they could get me out of debt and save thousands. My life has changed, I can sleep and have control of my finances. With the consumer proposal I’m debt free, I even appreciated the debt counselling. No consumer credit and struggling with debt for me. God bless!
Christien Egistone
4 weeks ago
★★★★★ Thank you, I will have me out of debt in 3 years and save 15k, I’ll never have credit card debt like that again, I appreciate your help and will refer and recommend you to friends.
Danny Demers
1 month ago
★★★★★ I was very pleased the way they handled my creditors. I ended up paying a fraction of what I owed on my debt.
Rise Above Your Debt!
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