How to File a Consumer Proposal

During your first meeting, we’ll work together to understand your full financial situation so we can build a proposal that fits your needs. This includes a careful review of:

• Who you owe money to – credit cards, payday loans, taxes, student loans, and unpaid bills
• Current balances – how much is outstanding on each debt
• Your income – employment income, benefits, or other sources
• Your assets – including your home, car, RRSPs, and savings

Many people find it helpful to bring recent bank statements, credit card bills, or a list of creditors to make the process smoother. This step helps us determine what your creditors might reasonably accept, and what monthly payment will actually work for you.

★★★★★ My husband was laid off, but our bills kept coming. We saved $18,000 and will be debt free in four years, Thank you Susan N. Oshawa

In a consumer proposal the trustee takes the information about your debts, and prepares all the paperwork including:

• your current finances
• how much you’re able to pay on the debts
• how long the proposal will last
• the monthly payments you’ll make

Where you have questions along the way, the trustee is there as your support and go to person.  The trustee works for you.

After your proposal is prepared, we file it electronically with the Office of the Superintendent of Bankruptcy. This official step immediately triggers a legal “stay of proceedings,” which protects you from creditor action.

Here’s what happens the moment it’s filed:

• Collection calls must stop — creditors are no longer allowed to contact you directly
• Wage garnishments are halted — your employer will be notified to stop deductions
• Lawsuits are frozen — creditors must pause any legal actions they’ve started
• All communication goes through the trustee — you no longer deal with creditors yourself

This is often the moment clients feel true relief. The pressure lifts, and you can focus on moving forward with a clear plan and the law on your side.

In a consumer proposal a stay of proceedings stops, wage garnishments and all creditor actions. Creditor must deal with the trustee, not you.

Once your consumer proposal is filed, the insolvency trustees of Yanch Dey will notify all your creditors directly. They have 45 days to review the terms and vote to accept or reject the proposal. Most proposals are accepted without any issues.

Here’s what to expect:

• Creditors receive the proposal details and must respond within 45 days
• No meeting is required unless creditors holding 25% or more of the debt request one
• If no objections are raised, the proposal is automatically accepted
• If a meeting is requested, we attend on your behalf and guide the discussion

During this stage, all communication is handled by your trustee, and you stay protected under the stay of proceedings.

In most cases, creditors don’t request a meeting—but if they do, we handle everything for you. These meetings give creditors a chance to ask questions, suggest changes, or request adjustments to the proposal.

Here’s how it works:

• Meetings only happen if creditors holding over 25% of the debt request one
• We represent you at the meeting and explain why the proposal is fair and reasonable
• If creditors vote “no,” we can revise the proposal or explore alternatives like renegotiation or bankruptcy

We guide you through the process and protect your interests, ensuring the best chance of approval with terms you can manage.

★★★★★ YanchDey did all the paperwork and dealt with our creditors.  The garnishee was stopped and we can sleep at night, we now have a fresh start. Many thanks, Debbie S. Ajax

Once your proposal is accepted, you begin making the agreed monthly payments—interest-free and based on what you can afford. Most proposals last between 3 to 5 years, and there are no hidden fees or penalties.

Here’s what happens next:

• You attend two mandatory “online” credit counselling sessions to help with budgeting and financial rebuilding
• We monitor your progress and are available to answer any questions during the repayment period
• At the end, you receive a Certificate of Full Performance, which means your debts are officially discharged

This is your clean slate. No more collection calls and wage garnishments are stopped—just a fresh financial start and a clear path forward.

Once your consumer proposal is complete, you can begin rebuilding your credit with confidence. The proposal stays on your credit report for a limited time, but the steps you take now can help you recover faster.

Here’s what to expect:

• Equifax removes the proposal 3 years after your final payment
• TransUnion removes it 3 years after completion or 6 years from filing—whichever comes first
• You can start improving your credit by:
  • Using a secured credit card (paid in full each month)
  • Making on-time payments for any current bills
  • Avoiding high balances or new unsecured debt

Rebuilding takes time, but most clients find their credit score improves steadily once they complete the proposal—and they never go back to overwhelming debt.

Every consumer proposal is different—but the results speak for themselves. Here are just a few examples from Ontario residents we’ve helped get out of debt and start over:

★★★★★ “My husband was laid off, and our bills piled up. The consumer proposal saved us $18,000 and gave us a plan we could actually follow. We’ll be debt free in four years.”
— Susan N., Oshawa

★★★★★ “We had $23,000 in credit card debt. Now we’re paying just $195 a month on a $7,000 proposal. It feels amazing to have control again.”
— Pauline V., Whitby

★★★★★ “My paycheque was being garnished, and I owed $36,000. The proposal stopped everything and cut it to $10,000. Thank you for giving me a fresh start.”
— Randy S., Pickering

Real people. Real results. A consumer proposal isn’t just a legal process—it’s a way to change your life.

Certainly! Here are the same 5 FAQs without the lines so you can copy and paste easily:

Q: How do I start the process of filing a consumer proposal in Ontario?
A: You start by speaking with a Licensed Insolvency Trustee. They’ll review your income, debts, and assets to create a proposal based on what you can afford to repay.

Q: What documents are needed to file a consumer proposal?
A: You’ll need to provide a list of your debts, recent pay stubs or income statements, and details about your assets. Bank statements and unpaid bills can also help speed things up.

Q: How long does it take to file a consumer proposal?
A: Once your trustee gathers the necessary information, the proposal is usually filed within a few business days. Creditor protection starts immediately after it’s submitted.

Q: What happens once the proposal is submitted?
A: Your creditors are notified and given 45 days to vote. During this time, collection calls stop and any wage garnishments are paused under a legal stay of proceedings.

Q: Can creditors reject the consumer proposal application?
A: They can, but most proposals are accepted. If a meeting is requested, your trustee will negotiate on your behalf or adjust the terms to get creditor approval.

If you’re struggling with debt and don’t know where to turn, a consumer proposal may be the solution you’ve been looking for. At YanchDey & Associates, we’ve helped thousands of Ontario residents—cut their debt and start fresh.

There’s no cost or obligation to speak with us. We’ll walk you through your options and explain everything clearly, without pressure.

• Get a personalized debt solution that fits your budget
• Stop collection calls and wage garnishments immediately
• Keep your home, car, and personal belongings
• Get back on track—faster than you think

📞 Call us today at 905-721-7506 or fill out our quick contact form to get started.
Your fresh start begins with just one conversation.

At YanchDey & Associates, we provide consumer proposals to individuals and families across Ontario—no matter where you live. Whether you’re in a large city or a smaller community, our Licensed Insolvency Trustees are here to help you eliminate your debt and get a fresh financial start.

We proudly serve clients in:

• Toronto and the Greater Toronto Area (GTA)
• Durham Region, including Oshawa, Whitby, Courtice, and Pickering
• Scarborough
• Eastern Ontario towns like Bowmanville and Cobourg

If you’re searching for consumer proposal help near you, chances are we’ve helped someone in your area. For example, if you’re in Durham Region, visit our Oshawa consumer proposal page for tailored support close to home.

Wherever you’re located in Ontario, we’re only a call or click away.