Consumer Proposals Ontario | Reduce Your Debt Legally

Consumer Proposals & Debt Relief

A consumer proposal is a legal way to reduce your debt and avoid bankruptcy. You make an agreement with your creditors to repay only part of what you owe. Once you complete the proposal, the remaining debt is legally forgiven.

For over 30 years, Yanch Dey & Associates has helped people in Ontario deal with serious debt problems. Our Licensed Insolvency Trustees can explain how consumer proposals work and help you decide if one is right for you.

Call us at 905-721-7506 to discuss your debt and find out how we can help.

Benefits of a Consumer Proposal

Consumer proposals help you deal with the debt you cannot afford to repay. The main benefits of a proposal include:

Reduce your debt and monthly payments: Pay back only part of your unsecured debt, with affordable payments spread over up to five years.
Stop collection calls and avoid bankruptcy: A consumer proposal provides legal protection from most collection actions on covered debts. You can deal with your debt without having to file for bankruptcy.
Keep your home and car: You can generally keep your assets while reducing unsecured debt, provided you continue making any required secured loan payments.

Once you complete your consumer proposal, the remaining eligible debt included in it is legally forgiven. Our Insolvency Trustee are happy to talk to you review your debts and explain how much you may be able to save, without obligation to use our services.

Consumer Proposal Savings Calculator

See how much eligible unsecured debt you could potentially reduce with a consumer proposal.

How Much Do You Owe in Credit Cards and Other Unsecured Debt? ($) Find Out How Much You Could Save ☎ 905-721-7506

This is a hypothetical example, not an estimate of what creditors will accept. Actual proposal payments depend on your financial situation, assets, creditors, and other factors.

How Does a Consumer Proposal Work in Ontario?

A consumer proposal in Ontario follows five main steps. Our Licensed Insolvency Trustees guide you through the process, prepare the paperwork, and deal with your creditors.

Step 1: Speak With a Licensed Insolvency Trustee

The first step is to discuss your debt with a Licensed Insolvency Trustee.

Financial Review: Your trustee reviews your income, living expenses, and debts. This helps determine how much you can afford to repay each month.
Debt Relief Options: Learn how consumer proposals work, whether you qualify for a consumer proposal, and how much debt you may be able to reduce. Other debt relief options are also explained.

You can ask questions and understand your options before deciding whether a consumer proposal is right for you.

Step 2: Prepare Your Consumer Proposal

If you decide to proceed, your trustee prepares an offer to your creditors based on your financial situation.

Affordable Payments: Your income, expenses, and debts help determine a payment amount you can manage. The goal is to reduce what you owe while keeping payments affordable.
Legal Documents: Your trustee prepares the required paperwork and explains the terms of your proposal. Payments can be spread over a period of up to five years.

Before filing, you will know the proposed payment amount, how long the proposal will last, and what you need to do.

Step 3: File Your Consumer Proposal

Once your consumer proposal is ready, your trustee files it with the federal government and notifies your creditors.

Legal Protection: Filing creates a stay of proceedings. This stops most collection calls, wage garnishments, and lawsuits involving covered debts. Further interest generally stops on unsecured debts included in the proposal.
Creditor Review: Creditors generally have 45 days to request a meeting. If a meeting is required, they can vote on your offer. If no meeting is requested, the proposal is deemed accepted.

Your trustee handles the creditor notices and explains what happens next. Read our consumer proposal timeline for more details.

Step 4: Make Your Consumer Proposal Payments

You make payments to your trustee based on the terms of your consumer proposal.

Monthly Payments: Your agreed payments can be spread over up to five years. No further interest is charged on the unsecured debts covered by an accepted proposal.
Trustee Support: Your trustee collects the payments and distributes the money to creditors. You also attend two financial counselling sessions to help manage your money.

The payment amount and schedule are explained before you file. Learn how consumer proposal payments are calculated.

Step 5: Complete Your Consumer Proposal

Once you make all required payments and meet the terms of your proposal, the process is complete.

Debt Forgiveness: You receive a Certificate of Full Performance. The remaining eligible unsecured debt included in your proposal is legally forgiven.
A Fresh Financial Start: With the covered debts behind you, you can focus on rebuilding your finances. Your credit can improve over time as you develop good money habits.

Learn what happens after completing a consumer proposal and how to move forward.

Find Out How Much Debt You Could Save

Speak with our team about your consumer proposal options.

905-721-7506

Debts You Can Include in a Consumer Proposal

Find out which debts can be included in a consumer proposal.

At Yanch Dey & Associates, our Insolvency Trustees help you by reviewing your debts, explaining which ones qualify, and show you how much you’ll be able to save with a proposal.

What Is the Difference Between Secured and Unsecured Debt?

Unsecured debt is included in a consumer proposal, secured debt is not.

Unsecured debt is money you owe that is not backed by property or another asset. Things like credit cards, payday loans, and most personal loans are common examples. These debts are usually included in a consumer proposal.
Secured debt is money you owe where the lender has a legal claim against an asset, such as your home or car. Mortgages and car loans are common examples. These debts are not included a consumer proposal.

Unlike in a bankruptcy you don’t lose or put these things at risk in a consumer proposal. You can usually keep your home and car while reducing your unsecured debts, provided you continue making the required payments on those secured loans.

Learn more about the difference between secured and unsecured debt.

What Types of Debt Can Be Included in a Consumer Proposal?

Most eligible unsecured debts fall into three main categories:

Credit Cards and Personal Loans: Credit card balances, payday loans, unsecured bank loans, personal lines of credit, and overdrafts.
Government Debts: Eligible CRA income tax debts, certain GST/HST debts, and government student loans that meet the applicable legal requirements.
Other Unsecured Debts: Collection accounts, unpaid utility bills, certain medical bills, and other debts not secured against property.

A consumer proposal allows you to make agreed payments to your Licensed Insolvency Trustee instead of paying each unsecured creditor separately. Your trustee distributes the money to your creditors.

Can You Include CRA Tax Debt in a Consumer Proposal?

Yes. Many debts owed to the Canada Revenue Agency (CRA) can be included in a consumer proposal.

These generally fall into three categories:

Income Tax Debt: Unpaid personal income taxes, including related interest and penalties.
GST/HST Debt: Certain outstanding GST/HST amounts owed by self-employed individuals or business owners.
Other Government Debts: Certain government benefit overpayments and other eligible debts, depending on the circumstances.

In many cases, the CRA is treated as an unsecured creditor. However, special rules may apply to some government debts, particularly where the CRA has registered security against property.

Once your consumer proposal is filed, a legal stay of proceedings generally stops CRA collection actions involving debts covered by the proposal, subject to legal exceptions.

Our Licensed Insolvency Trustees can review your tax debts and explain whether a consumer proposal may help.

Can You Include Bank Loans and Lines of Credit in a Consumer Proposal?

Yes. Most unsecured bank loans and personal lines of credit can be included in a consumer proposal.

These generally include:

Personal Bank Loans: Loans that are not secured against property or another asset.
Unsecured Lines of Credit: Outstanding balances on personal lines of credit and bank overdrafts.
Bank Collection Accounts: Eligible unsecured debts that have been transferred or assigned to collection agencies.

If your consumer proposal is accepted, you make your agreed payments to your trustee instead of paying each unsecured creditor separately.

This can make your finances easier to manage while helping you reduce the amount you owe.

Not Sure Which Debts You Can Include?

You don’t need to figure this out yourself. Our Trustees will review your debts with you, explain which ones qualify, and show you where you can save money.

Call Yanch Dey & Associates at 905-721-7506. Let’s start with a conversation about your debts and how we may be able to help.

A consumer proposal can eliminate thousands of dollars in credit card debt and unsecured loans, helping you become debt-free in five years or less!

Who Qualifies for a Consumer Proposal in Ontario

Qualifying for a consumer proposal in Ontario may be easier than you think.

Under federal law, you generally need to:

Owe at least $1,000 and be unable to keep up with payments, or owe more than your assets are worth.
Owe no more than $250,000, excluding debts secured by your main home.
Live, carry on business, or own property in Canada.

Your proposal must also offer payments you can afford and that your creditors will accept.

Our trustees will review your debts, income, and expenses with you. We’ll explain whether you qualify and help you understand your options.

You do not need to wait until collection calls start or your wages are garnished. Call Yanch Dey & Associates to discuss your situation.

★★★★★ 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

Are There Upfront Fees for a Consumer Proposal?

No upfront fees. All costs included in your monthly payment.

At Yanch Dey & Associates, there are no upfront fees to file a consumer proposal. Trustee fees and administration costs are included in your agreed monthly payment.

You pay these costs through your proposal payments, rather than paying them separately.

What Does Your Consumer Proposal Payment Cover?

Your monthly payment covers:

Payments to your creditors.
Government-regulated trustee fees.
Filing and administration costs.
Two required financial counselling sessions.

Our trustees will review your income, expenses, and debts with you. We’ll help work out a payment you can afford and submit the proposal to your creditors for approval.

Before you file, we’ll explain how much you will pay, what your payments cover, and when they begin.

Learn more about the cost of a consumer proposal.

Kelly Dey, Licensed Insolvency Trustee — Kelly Dey Licensed Insolvency Trustee

Let’s Talk About Your Debt

A clear first step. No pressure. No judgment.

You don’t have to work through this alone.

Call Yanch Dey & Associates to discuss your situation. We’ll review your options and explain whether a consumer proposal is right for you.

Call 905-721-7506

Confidential advice about your next steps.

Frequently Asked Questions about Consumer Proposals

Q: What is a consumer proposal in Ontario?

A consumer proposal is a legal agreement that helps you deal with your debt in a safer, easier way.

It’s filed through a Licensed Insolvency Trustee and lets you combine your unsecured debts into one affordable monthly payment. Interest stops right away, and you usually repay only a portion of what you owe — often as little as 20–30%. Once the proposal is accepted, your creditors must follow the terms, and you stay fully protected while you pay it off.

Q: How much does a consumer proposal cost?

A. Consumer proposals have no upfront fees, and you only pay one fixed monthly amount that fits your budget. The trustee’s fees are built into that payment, so there are no extra charges or surprises. Most people end up paying back only a portion of what they owe — often far less than the full balance — with all interest and penalties stopped the moment the proposal is filed.

Q. What debts can be included in a consumer proposal?

A. Most unsecured debts can be included, such as credit cards, payday loans, bank loans, overdrafts, tax debt, and some student loans.

We explain each type of debt in our section on creditors you can include.

Q: Can I keep my home and car in a consumer proposal?

A. Yes. A consumer proposal does not take away your home, car, or any of your personal assets. As long as you keep making your regular mortgage or car loan payments, you keep everything you own. This is one of the biggest advantages of a proposal compared to bankruptcy.

A proposal lets you deal with your debt while staying in full control of your belongings and your everyday life.