A consumer proposal is one of the easiest ways to deal with debt in Ontario. Learning how to file a consumer proposal gives you one affordable payment plan while stopping all collections. This guide shows how it works and how quickly it can help.
Give us a call today and speak to our Licensed Insolvency Trustees today for fresh start.
Filing a consumer proposal in Ontario is easier than most people think.
When you know the steps, the process feels clear and manageable. Below is a simple guide that shows what happens, who is involved, and how a Licensed Insolvency Trustee helps protect you from creditors while you get back on track.
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!
The process starts with a private meeting with a Licensed Insolvency Trustee (LIT). In this meeting, you review your income, debts, monthly bills, and goals. The trustee explains how consumer proposals work, what they can do for you, and whether a proposal is the right option for your situation.
Most people are relieved to learn that a proposal can stop collection calls, freeze interest, and halt wage garnishments very quickly after filing.
You do not need to pay anything upfront for this first meeting, and there is no obligation to proceed if it doesn’t feel right for you.
Next, you and the trustee look at your budget, what can you realistically afford when filing a proposal?
Together you review your take-home pay, rent or mortgage, groceries, utilities, and other living costs. The goal is to find a payment that is fair to your creditors but still affordable for you.
From this budget, the trustee recommends a monthly payment that fits your situation. With a consumer proposal, you keep your home, car, RRSPs, and personal belongings while reducing what you owe. You make one simple payment each month instead of juggling many bills and due dates.
★★★★★ 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
When you agree on a plan, the trustee prepares your official consumer proposal documents. These forms summarize your offer to your creditors and how much they will receive over time.
Once the documents are signed and filed, a legal “stay of proceedings” takes effect. This stay gives you powerful protection. Creditors must stop:
From this point on, your trustee deals with your creditors – not you. You no longer have to speak with them directly about the debts covered by the proposal.
After your proposal is filed, your creditors have 45 days to review and vote on it.
They can accept the proposal, ask questions through your trustee, or request minor changes.
In many cases, creditors accept the proposal because they receive more through a consumer proposal than they would in a bankruptcy. If any questions come up, our trustee handles all communication and keeps you updated. We do everything for you.
This consumer proposal calculator shows an approximate of how much you could save.
Once the proposal is filed, you begin making your monthly payments to the trustee, no one else.
These payments are usually spread over three to five years, depending on your situation and what was agreed with your creditors.
The payment amount stays the same, and no interest or late penalties are added. This makes it much easier to plan and stick to your budget. If your situation improves, you can also choose to pay off the proposal early without penalties.
Every consumer proposal includes two financial counselling sessions. These are short, friendly meetings designed to help you build stronger money habits for the future.
In these sessions, you learn practical tips on budgeting, using credit wisely, and planning for emergencies. Many people find these helpful because they give you tools to avoid falling back into the same problems later on.
★★★★★ 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
When you make your last payment, the trustee issues a Certificate of Full Performance.
This certificate confirms that you have completed your consumer proposal and that all debts included in the proposal are legally settled.
Your credit report is updated to show that the proposal is finished. From there, you can focus on rebuilding your credit and moving forward with a fresh start.
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 consumer proposal only affects the person who files it.
Your spouse is not responsible for your debts unless they co-signed or have joint accounts with you. Their credit score, income, and personal finances stay separate. If any debts are shared, the trustee will explain your options so you both understand how it works.
A. Yes. Most government debts can be included in a consumer proposal, including CRA tax balances, HST debts, and many types of student loans.
These creditors also must stop collections once the proposal is filed. Your trustee reviews each debt and confirms which ones qualify so you know exactly what relief you’ll get.
A. If your income goes up or down, your proposal does not automatically change. Your monthly payment stays the same unless you choose to adjust it. Many people keep the original amount, but some increase their payments to finish sooner.
If you face financial hardship, the trustee can help you discuss options before anything becomes a problem
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.
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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