Consumer Proposals

Consumer Proposals are a government-approved debt solutions administered by Licensed Insolvency Trustees in Ontario.

Insolvency affects economic stability and social support systems. That’s why, together with the government, Yanch Dey is here to help.

With a consumer proposal, we’ll help you become debt-free in a manageable way—lower your monthly payments, stop collection calls, and take back control of your financial future without the stress of bankruptcy.

A Consumer Proposal is a legal agreement for debt relief that’s manageable and fair. A proposal is set up by an insolvency trustee, who works with your creditors to reduce debt by 70%.

You’ll pay back the rest—just 30%—through monthly payments that you can afford, with no interest or penalties, over a period of up to 5 years.

The best part? Consumer proposals aren’t just about getting rid of debt—it’s about getting back control of your finances, without the harsh impact of filing for bankruptcy.

The best part? A consumer proposal doesn’t just reduce debt—it helps you regain control of your finances without the consequences of bankruptcy.

And unlike bankruptcy, you keep what’s important to you—your home, your car, personal belongings, everything! It’s a way to move forward while protecting the things you’ve worked hard for.

A consumer proposal is a powerful debt relief solution that helps you manage and reduce what you owe. It applies to unsecured debts, meaning those not tied to an asset. Here’s what can be included:

• Credit Cards – Balances on Visa, Mastercard, Amex, and store credit cards can be fully included. Since these debts are unsecured, they can be significantly reduced or even eliminated through a consumer proposal.

• Personal Loans – Covers unsecured loans like lines of credit, consolidation loans, and renovation loans. As long as no asset was used as collateral, these debts can be restructured into an affordable repayment plan.

• Outstanding Bills – Includes payday loans, utility bills, phone bills, and money owed to service providers. A consumer proposal can help consolidate these payments into a single, manageable amount.

• Student Loans – If you have been out of school for at least seven years, your student loan debt can be fully discharged. If it’s been less than seven years, a portion may still be included in your proposal.

• Tax Debt – Unpaid income taxes, GST/HST, and benefit overpayments (such as Canada Child Benefits and CPP/OAS) qualify. Even penalties and interest can be included in a consumer proposal.

A consumer proposal can give you a fresh financial start by reducing debt and creating a structured, manageable repayment plan. Want to see if you qualify? Contact us today!

Government of Canada Video explaining how a Consumer Proposal works

★★★★★ 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

Consumer Proposals offer a proven way to escape overwhelming debt and get a start fresh. This government-regulated debt relief program is designed help you by:

• Stops Credit Card Debt: In a consumer proposal credit card debt is slashed first, dramatically reducing what you owe.

• All Unsecured debts reduced 70% or more: A proposal reduces all your debts by thousands of dollars legally.

• Stops Creditor Harassment: Creditors are prohibited by law from contacting you.  This includes calls for lawsuits, bill and/or collection calls, everything.

• Stops Wage Garnishments: If your wages have been garnished, a proposal stops the garnishment, right away. Putting your money, back in your pocket.

• Keep Your Property: in a proposal you lose nothing but the debt. Your home, car, and personal belongings are secure and untouchable.

• No Interest or Late Fees: No additional fees are added. You make one monthly payment that you can afford, payable over 5 years.

At YanchDey & Associates, we’ve helped your friends and neighbours get control of their finances through consumer proposals, and we can help you. If growing financial pressures are weighing you down, give us a call and let’s talk.

Take control of your debt today. Call today, lets discuss your issues. If you could have done it yourself you would of, so now let us give you a helping hand to get a break and a fresh start.

A Consumer Proposal follows a straightforward process that prioritizes your financial stability:

• Financial Assessment: You meet with one of our insolvency trustees, who listens to your issues, and learns about your finances.  You explain to the trustee what you owe, what money is coming in, and what you can or cannot afford.

• Proposal Creation: The trustee designs a repayment plan from what you’ve told them to present to your creditors. The creditors are shown what you owe and what you can reasonably afford to pay back over a 5 year period.

• Creditor Approval: Creditors then vote on the proposal, and if the majority agree, it becomes legally binding for your creditors.

• Legal Protection: Once filed, all collection actions—including wage garnishments, lawsuits, and creditor calls—stop immediately.

• Repayment Plan: You make interest-free monthly payments over a 3 to 5-year period to the trustee.  The trustee then forwards the payment to your creditors, allowing you to clear your debts without financial strain.

At the end of the repayment term, all unsecured debt is forgiven meaning all your debts are cleared, leaving you with a clean slate and debt free!

★★★★★ 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

To be eligible for a consumer proposal in Canada, you must meet these requirements:

• Debt Threshold: Your total unsecured debt, including any credit card debt, medical bills, and loans (excluding your mortgage & car loans), must be less than $250,000.

• Ability to Pay: You need to show that you have an income and can make consistent, manageable payments based on the terms of the proposal. This ensures you can realistically complete the payment plan.

• Residency: You must be a legal resident of Canada to file a consumer proposal.

• Insolvency Status: You must be insolvent, meaning your bills are more than what your bringing in and you cannot keep up with the payments

A consumer proposal a structured repayment plan, that protects you from debt collectors, and avoids the more severe impact of filing for bankruptcy. This process allows you to move forward without the stress of overwhelming debt, offering a fresh start and a clear path to financial recovery.

★★★★★ 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

These examples of consumer proposals are typical of what most people will receive. Debts drop dramatically, you make one low payment that you can afford without interest or penalties added. Call and let’s discuss your case and how we can help you.

Consumer Proposal Example 1

John, a 35-year-old Canadian, has found himself under a considerable pile of debt.

He owes $20,000 in credit card debt and has personal loans amounting to $25,000. Unable to manage his monthly payments, he’s now dealing with persistent collection calls and legal threats from his creditors.

He decides to speak to a licensed insolvency trustee about a Consumer Proposals. Together, they develop a proposal for the trustee to present to his creditors, which includes:

• five-year payment plan
• manageable monthly payment of $216/month.
• interest, penalties & additional charges are stopped

Once this proposal is negotiated and agreed upon, it becomes a legally binding agreement. John is now committed to making the agreed payments, while his creditors are barred from taking any further legal action against him.

In John’s case, his total debt was $45,000. Filing a consumer proposal reduced his debt to $13,000 and saved him $32,000. The $13,000 is payable over 5 years at about $216/month. With the Consumer Proposal, he reduced his overall debt by a whopping 70%.

Consumer Proposal Example 2

Meet Sarah: A Successful Professional Facing Unforeseen Financial Challenges

Sarah, a 42-year-old marketing executive in Toronto, has always been financially responsible. She owns a condo, has a stable job, and enjoys a comfortable lifestyle. However, life took an unexpected turn when her elderly parents fell ill, requiring her to take time off work and cover their medical expenses. As the costs piled up, Sarah found herself relying more and more on her credit cards and lines of credit.

Over time, Sarah accumulated $55,000 in unsecured debt, including $30,000 in credit card balances and $25,000 from a personal loan. Despite her best efforts, she struggled to keep up with the minimum payments, and the stress began to take a toll on her health and well-being. She feared losing her condo and was overwhelmed by collection calls.

Realizing she needed help, Sarah consulted a Kelly Dey an insolvency trustee at YanchDey to explore her options. They discussed the possibility of bankruptcy but ultimately decided that a Consumer Proposal was a better fit for her situation.

Here’s what they came up with:

• Three-year payment plan
• Reduced monthly payment of $450/month
• All interest, penalties, and additional charges were immediately frozen

Sarah’s proposal was a win-win for everyone. Her creditors agreed to reduce her total debt from $55,000 to $16,200—a 70% reduction—payable over three years at $450/month. Once accepted, the proposal became legally binding, ensuring that her creditors could no longer pursue her for the original amount or take legal action against her.

Not only did Sarah avoid bankruptcy, but she also retained ownership of her condo and began to rebuild her financial future with a sense of relief. The Consumer Proposal allowed her to regain control, with the peace of mind that she would emerge from this experience stronger and more financially secure.

As always, it’s important to remember that each Consumer Proposal is unique and tailored to the individual’s specific financial situation. The outcome may vary depending on the agreement reached with creditors.

What does a consumer proposal cost?

The cost of a proposal is taken from the monthly payments you make to the creditors, about 20- 25%.  For example if your monthly payment is $150, about $30 goes to the trustee for their services, fees and costs. The balance goes to the creditors, but you pay nothing extra.

Who is eligible for a consumer proposal?

Individuals with unsecured debts ranging between $1,000 and $250,000 (excluding the mortgage on their principal residence) are eligible for a consumer proposal. You must also be unable to fully repay your debts as they come due, have an income and be a Canadian resident.

How does a consumer proposal affect my credit score?

Filing a consumer proposal will affect your credit score, giving you an R7 rating. However, this is less severe than bankruptcy, which carries an R9 rating, the most negative score. The proposal stays on your credit report for 3 years.  If you’re thinking about a proposal, your credit score is probably already pretty low, so taking action can only improve your rating.

What types of debts can be included in a consumer proposal?

Unsecured debts such as credit card debt, personal loans, lines of credit, medical bills, and payday loans can be included. Secured debts like mortgages or car loans are not included.

How long does a consumer proposal last?

A consumer proposal can last up to five years, though you can pay it off sooner if your financial situation allows. The payment terms are flexible and tailored to your budget.

Can I keep my assets in a consumer proposal?

Yes, one of the main advantages of a consumer proposal is that you can keep all your assets, including your home, car, and other valuables. Unlike bankruptcy, no assets are seized.

What happens if my creditors reject the proposal?

If your creditors reject the proposal, your trustee can help you renegotiate and amend the terms. If an agreement still can’t be reached, you may need to explore other debt relief options, such as bankruptcy.

What are the costs associated with filing a consumer proposal?

The costs are regulated by the government and included in your monthly payments, so there are no upfront fees. The trustee’s fees are built into the proposal itself.

How do I start a consumer proposal?

To start a consumer proposal, you’ll speak with one of our insolvency trustees. They will assess your financial situation and craft a proposal tailored to your budget and what you can afford to pay.

What are the advantages of a consumer proposal over bankruptcy?

A consumer proposal allows you to keep all your property, it provides a structured repayment plan and has a less severe impact on your credit score. Additionally, it stops wage garnishments and legal actions from creditors.

Consumer Proposal Ontario | Consumer Proposals