Consumer Proposals

A consumer proposal is a government-approved legally binding debt relief agreement between you and your creditors, created with the help of a Licensed Insolvency Trustees.

A proposal allows you to repay a portion of what you owe—usually around 30%—through fixed, interest-free monthly payments over a period of up to five years. Once the proposal is accepted, all collection calls, wage garnishments, and legal actions must stop by law.

Unlike bankruptcy, a consumer proposal lets you keep your assets, maintain stability in your life, and protect your credit from further damage. It works best for people in Ontario who are struggling with unsecured debts such as:

• Credit card debt

• Personal loans or lines of credit

• Unpaid income taxes or CRA debts

• Payday loans and utility bills

• Older student loans (7+ years since last enrolled)

With a consumer proposal, you stay in control of your finances—no court appearance is required, and you’ll have peace of mind knowing your debts are being handled legally and fairly. It’s one of the most effective and affordable alternatives to bankruptcy available in Ontario today.

Filing a consumer proposal in Ontario is a straightforward process that puts you back in control of your finances. It begins with a confidential consultation with a Licensed Insolvency Trustee, who will assess your financial situation and determine whether a proposal is right for you. From there, the process follows five key steps:

• Step 1: Financial Assessment – We review your debts, income, and expenses to understand what you can realistically afford to repay.
• Step 2: Proposal Creation – Your trustee drafts a formal offer to your creditors, usually repaying 30% or less of what you owe.
• Step 3: Creditor Vote – Creditors vote to accept the proposal (most do); once approved by the majority, it becomes legally binding on all.
• Step 4: Legal Protection – As soon as the proposal is filed, all wage garnishments, lawsuits, and collection calls must stop.
• Step 5: Monthly Payments – You make affordable, interest-free payments for up to five years—often far lower than your current obligations.

Once the final payment is made, the remaining unsecured debt is legally forgiven. Throughout the process, you stay out of bankruptcy, keep your assets, and move forward with a clear plan toward financial freedom.

★★★★★ 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

A consumer proposal is designed to help Ontarians manage and eliminate unsecured debts, meaning debts that aren’t tied to an asset like a house or car. This includes a wide range of common financial obligations that often become overwhelming. If you’re struggling with any of the following, a consumer proposal could significantly reduce what you owe:

• Credit card debt – Visa, Mastercard, American Express, and retail cards are fully included.
• Personal loans – Unsecured lines of credit, bank loans, and consolidation loans can all be part of your proposal.
• Payday loans and cash advances – These high-interest debts can be consolidated and dramatically reduced.
• Tax debt owed to the CRA – Including unpaid income tax, GST/HST, and overpaid government benefits.
• Student loans – If it’s been more than 7 years since you left school, your student loan debt may be completely discharged.
• Utility and service bills – Past due hydro, internet, phone, and similar bills are eligible for inclusion.

By consolidating these debts into a single, affordable payment—with no interest and no penalties—a consumer proposal gives you the breathing room you need to recover financially. If you’re in Oshawa, Ajax, Whitby, or anywhere in Ontario, we can help determine which of your debts qualify and build a proposal tailored to your situation.

★★★★★ My husband was laid off, but our bills kept coming, we were drowning in debt. The consumer proposal solved our money problems and saved us $18,000. We will be debt free in four years, Thank you Susan N. Oshawa

Curious how much a consumer proposal could reduce your debt? Our Consumer Proposal Calculator offers a quick, no-obligation way to estimate your monthly payments and total debt savings. Whether you live in Oshawa, Ajax, Whitby, or anywhere in Ontario, the results can help you understand your options before making a decision.

Simply enter your total unsecured debt, and we’ll show:

• Your estimated new monthly payment – Based on a typical 70% debt reduction.
• How much of your debt could be forgiven – Often tens of thousands in savings.
• How long the proposal would last – Usually between 3 to 5 years, depending on what you can afford.

Example: If you owe $30,000, your monthly payment could be reduced to $180, and the total repaid may be just $9,000.

This tool gives you a clear snapshot of how a consumer proposal works—without any commitment. Try the calculator now or speak with one of our Licensed Insolvency Trustees for a more detailed, personalized estimate.

A consumer proposal is one of the most accessible debt relief options available in Ontario, but you’ll need to meet a few basic criteria. If you’re struggling to keep up with payments and want to avoid bankruptcy, there’s a good chance you qualify.

To be eligible, you must:

• Owe between $1,000 and $250,000 in unsecured debt (not including your mortgage).
• Live in Canada and be either a resident or have property or business interests here.
• Be insolvent, meaning you can’t keep up with your current payments or owe more than you own.
• Have enough income to make consistent monthly payments under a proposed plan.

This program works for individuals with regular employment, contract work, government benefits, or even self-employment income. If you’re in Durham Region or anywhere in Ontario, we’ll review your financial situation and confirm your eligibility—usually in just one free consultation.

For many people in Ontario, a consumer proposal offers a better alternative to bankruptcy. It allows you to reduce your debt without giving up your assets or dealing with the long-term consequences of a bankruptcy record.

Here’s why more Ontarians are choosing consumer proposals:

• You keep your home, car, and personal belongings – Nothing is seized or sold.
• Your credit score takes less of a hit – A proposal gives you an R7 rating, compared to R9 with bankruptcy.
• No surplus income penalties – If you earn more money during the proposal, your payment stays the same, in a bankruptcy you may have to make surplus payments.
• Creditors can’t take legal action – Proposals offer full legal protection from lawsuits and garnishments.
• You stay in control – Payments are based on what you can afford, not court calculations.

While bankruptcy may still be the right option for some, most people prefer a consumer proposal because it’s more flexible, less disruptive, and offers a faster path back to financial stability.

★★★★★ 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

Wondering how much a consumer proposal can actually save you? These real-world examples show just how powerful a proposal can be. Every case is different, but most clients reduce their debt by 60–70% and walk away with one affordable, interest-free monthly payment.

Example 1: John from Whitby
John owed $45,000 in credit card and personal loan debt. After speaking with a trustee, he filed a consumer proposal that reduced his repayment to $13,000, payable over five years at $216/month. His collection calls stopped immediately, and he kept his vehicle and job without interruption.

Example 2: Sarah from Oshawa
Sarah was overwhelmed by $55,000 in unsecured debt after taking time off work to care for her parents. Her consumer proposal cut her debt to $16,200, with a monthly payment of $450 over three years. She avoided bankruptcy, stayed in her condo, and is now rebuilding her credit.

Example 3: Mike & Jen from Bowmanville
With rising bills and only minimum payments going toward interest, Mike and Jen owed $30,000. Through a consumer proposal, they paid back just $9,000—a savings of $21,000—with a monthly payment of $150. They’re now debt-free and stress-free.

Example 4: Priya from Scarborough
Priya, a 38-year-old single mother, was juggling $38,000 in debt from credit cards, a personal line of credit, and old utility bills. After months of falling behind, she was facing wage garnishment and non-stop collection calls. She reached out to YanchDey & Associates for help.

With our guidance, Priya filed a consumer proposal that reduced her debt to just $11,400, spread over five years at $190/month. The garnishment stopped immediately, her creditors could no longer contact her, and she was able to keep both her car and her peace of mind. Today, Priya is on track to be completely debt-free before her daughter starts high school.

Each of these clients faced different challenges, but they all found a common solution—a consumer proposal tailored to their needs and budget. Let’s talk about what that might look like for you.

At YanchDey & Associates, we’ve built our reputation on helping people across Ontario take control of their debt and rebuild their financial futures. As Licensed Insolvency Trustees, we’re legally authorized by the federal government to file consumer proposals, and we treat every client with compassion, respect, and professionalism.

Here’s what sets us apart:

• Decades of experience helping clients across Durham Region, the GTA, and Ontario-wide.
• Local offices and remote service options, so you can choose the support that works best for you.
• No-pressure consultations that focus on your goals, not sales tactics.
• Proven results, with thousands of successful proposals filed and millions in debt eliminated.

Whether you’re in Oshawa, Ajax, Whitby, Scarborough, or anywhere else in Ontario, our team is ready to guide you through the process and help you make a fresh start—without judgment or stress.

No matter where you live in Ontario, debt can affect your peace of mind, your family, and your future. That’s why YanchDey & Associates proudly provides consumer proposal services to individuals and families across the province—whether you’re in a major city or a growing suburban community.

We regularly assist clients in:

• Durham Region – Including Oshawa, Whitby, Ajax, Pickering, and Clarington (Bowmanville & Courtice)
• Greater Toronto Area – Serving Scarborough, East York, North York, and Markham
• Eastern Ontario – Helping clients in Cobourg, Peterborough, and surrounding areas
• Remotely across Ontario – We offer virtual consultations and electronic filing for your convenience

Each community we serve faces unique challenges—from rising living costs in Pickering to job instability in Oshawa. That’s why our approach is always local, personal, and tailored to your financial situation.

💬 Looking for help near you? Visit our consumer proposals by location page to find the office or service area closest to you.

Q: What is a consumer proposal in Ontario?
A: A consumer proposal is a legal agreement filed with a Licensed Insolvency Trustee to reduce and consolidate your unsecured debt. You repay only a portion—often around 30%—through fixed monthly payments over a period of up to five years.

Q: How much does a consumer proposal cost?
A: There are no upfront fees. The trustee’s fees are built into your monthly payment, typically accounting for 20–25% of what you pay.

Q: Will a consumer proposal affect my credit score?
A: Yes, a consumer proposal results in an R7 credit rating, which is less damaging than bankruptcy’s R9. It stays on your credit report for three years after the proposal is completed.

Q: Can I keep my home and car in a consumer proposal?
A: Yes, you keep all your assets, including your home and vehicle. This is one of the main advantages of a proposal compared to bankruptcy.

Q: Can CRA tax debt be included in a consumer proposal?
A: Yes, CRA tax debts such as income tax, GST/HST, and benefit overpayments can be included. Once your proposal is accepted, all collection activity must stop.

Q: Are student loans included in a consumer proposal?
A: Student loans can be discharged if you’ve been out of school for seven or more years. If it’s been less than seven years, they may still be partially included.

Q: What happens if creditors reject my consumer proposal?
A: Your trustee can revise and resubmit a new offer. If no agreement is reached, bankruptcy may be considered—but rejection is uncommon.

Q: How long does a consumer proposal last?
A: A proposal typically lasts between three to five years. You can pay it off early at any time without penalties.

Q: Will a consumer proposal stop collection calls and wage garnishments?
A: Yes, once your proposal is filed, a legal “stay of proceedings” immediately stops all collection activity, including wage garnishments and lawsuits.

Q: Do I have to go to court for a consumer proposal?
A: No, court appearances are not required. Your Licensed Insolvency Trustee handles all communication with creditors.

Q: Can self-employed or retired individuals file a consumer proposal?
A: Yes, as long as you have a stable source of income, you can qualify. This includes pension income, contract work, or business income.

Q: Who qualifies for a consumer proposal in Ontario?
A: You must owe less than $250,000 in unsecured debt (excluding a mortgage), be insolvent, and have enough income to make regular payments. Most individuals who are struggling with debt and can make a modest monthly payment will qualify.

Q: Can I file a consumer proposal remotely or online?
A: Yes, you can complete the entire process remotely. We offer phone consultations, virtual meetings, and electronic document signing across Ontario.

Government of Canada Video explaining how a Consumer Proposal works

If you’re feeling overwhelmed by debt, you’re not alone—and you don’t have to figure it out on your own either. A consumer proposal can reduce what you owe, stop the stress of collection calls, and give you a clear, affordable path forward.

At YanchDey & Associates, we’ve helped thousands of Ontarians take control of their finances with honest advice, zero judgment, and personalized repayment plans that actually work. Whether you’re in Ajax, Oshawa, Whitby, Scarborough, or anywhere across Ontario, we’re ready to help you start fresh—starting today.

📞 Call us now at (905) 683-5100

There’s no cost, no pressure, and no obligation—just answers and a plan that puts you back in control.

Consumer Proposal Ontario | Consumer Proposals