A consumer proposal in Ontario is a simple government-approved way to cut your debt,
stop interest, and get protection from your creditors — all in one affordable monthly payment.
Consumer Proposals
Ontario Consumer Proposals
A consumer proposal in Ontario is a simple government-approved way to cut your debt,
stop interest, and get protection from your creditors — all in one affordable monthly payment.
stop interest, and get protection from your creditors — all in one affordable monthly payment.
How a Consumer Proposal Works in Ontario
A consumer proposal is designed to give you fast protection and a simple plan you can follow. Once it’s filed, interest stops, collection calls end, and you make one affordable monthly payment.
Here’s how it works:
- You meet with a Licensed Insolvency Trustee to review your debts, income, and household budget.
- The trustee prepares a proposal based on what you can realistically afford each month.
- Your creditors vote on the offer, and most proposals are accepted because they provide more recovery than bankruptcy.
- All interest stops immediately, giving you instant breathing room.
- You make one monthly payment to the trustee, who distributes the money to your creditors.
- Once the proposal is completed, the remaining eligible debt is erased, and you get a fresh financial start.
This simple process removes the stress of rising interest, collection pressure, and overwhelming payments, giving you a clear path back to stability.
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!
Who Qualifies for a Consumer Proposal?
Most people in Ontario qualify for a consumer proposal. The rules are simple, and the goal is to create a payment plan you can actually afford.
You may qualify if:
- You owe unsecured debt of less than $250,000 (not including your mortgage).
- You are struggling to keep up with payments or only making interest or minimum payments.
- You live in Canada and need legal protection from creditors and collection agencies.
- You have income or support that allows you to make a reasonable monthly payment.
Consumer proposals work well for everyday situations, including
credit card balances, personal loans, lines of credit, CRA tax debt, payday loans, and collection accounts.
A short meeting with a Licensed Insolvency Trustee can confirm if you qualify and show how much your payments can be reduced.
What Debts You Can Include in a Consumer Proposal
A consumer proposal can cover most unsecured debts, which makes it one of the most flexible and effective debt relief options in Ontario. These debts are grouped into one affordable monthly payment, and all interest stops as soon as the proposal is filed.
You can include:
- Credit card balances from any bank or lender.
- Personal loans and lines of credit, even if they are in collections.
- Payday loans and high-interest installment loans.
- Bank overdrafts and negative accounts.
- CRA tax debt, including income tax, GST/HST, and penalties.
- Collection agency accounts of any kind.
Debts you cannot include:
- Secured loans such as a mortgage or car loan, because they are tied to an asset.
- Child support or spousal support arrears.
- Student loans under seven years old, unless you meet a hardship exemption.
Most people are surprised to learn that CRA debt and high-interest loans can be included, which often leads to the biggest monthly savings. A Licensed Insolvency Trustee can review your debts and confirm exactly what qualifies.
★★★★★ 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
How Much Does a Consumer Proposal Cost?
A consumer proposal is one of the most affordable ways to deal with debt in Ontario. There are no upfront fees, and you do not pay anything to start the process. All trustee fees are included in your single monthly payment, which makes the program simple and predictable.
Your cost is based on:
- Your income and what you can reasonably afford each month.
- The amount of unsecured debt you owe today.
- What creditors would receive in a bankruptcy, which helps determine a fair offer.
Most people end up paying only a portion of their total debt, with no added interest, penalties, or extra charges. This often reduces payments by 70% or more compared to paying the debt in full or trying to manage minimum payments.
Because all fees are built into the proposal, you get a clear plan, a fixed monthly cost, and a legally binding agreement that protects you from future increases.
Benefits of Filing a Consumer Proposal
A consumer proposal gives you strong legal protection and quick relief from overwhelming debt. It is designed to make your monthly payments affordable and take away the constant stress of money worries.
Key benefits include:
- All interest stops instantly from the moment the proposal is filed.
- Monthly payments are reduced to a level that fits your budget.
- Collection calls and letters stop, so creditors and collection agencies can’t harass you.
- Wage garnishments are stopped, even if they have already started.
- You keep your home, car, RRSPs, and personal belongings, as long as you stay current on those secured payments.
- You avoid bankruptcy, while still getting a large portion of your debt forgiven.
These benefits make consumer proposals the most popular debt relief option in Ontario. Many people feel lighter and more in control the same day their proposal is filed, because the interest stops, the calls stop, and they finally have a clear plan.
Consumer Proposal Calculator
This consumer proposal calculator shows an approximate of how much you could save.
Downsides & Things to Consider
A consumer proposal has many advantages, but it’s important to understand the downsides so you can make the right choice. The impact is usually manageable, but you should know exactly what to expect before you file.
Some things to consider:
- Your credit rating will drop while the proposal is active. This is normal and temporary.
- The proposal lasts longer than bankruptcy, usually between three and five years.
- You must make payments on time, or the proposal can be cancelled.
- Your creditors have the right to vote, and they may ask for small changes to the offer.
- Some debts can’t be included, such as secured loans, child support, or student loans under seven years.
Even with these downsides, most people in Ontario prefer a consumer proposal over bankruptcy because it protects assets, offers predictable payments, and avoids the stress of ongoing interest and collections. It’s a fair, structured way to get back on track without starting over.
Consumer Proposal vs. Bankruptcy
Many people compare consumer proposals with bankruptcy when deciding how to deal with their debt. Both options provide legal protection, but they work very differently and have different long-term effects.
Here’s a simple way to understand the difference:
- A consumer proposal lets you keep all your assets, including your home, car, and RRSP
- Bankruptcy may require you to surrender certain assets, depending on their value.
- A proposal has fixed monthly payments, so the amount never changes.
- Bankruptcy payments can increase if your income goes up during the process.
- A proposal has a lighter credit impact, and many people rebuild sooner.
- Bankruptcy has the strongest impact on credit, and it may limit certain career paths.
A consumer proposal is often the better fit for people who want stability, want to protect their property, and prefer a predictable plan they can manage. Bankruptcy may still be appropriate in certain situations, but most Ontarians try a proposal first because it offers more control and less disruption to their life.
★★★★★ 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
After a Consumer Proposal Is Completed?
When you finish your consumer proposal, you get a clean financial slate. The moment your last payment is made, the remaining eligible debt is legally erased, and you can start rebuilding your credit and your confidence.
Here’s what happens next:
- You receive a Certificate of Full Performance, which confirms the proposal is complete.
- All included debt is officially discharged, and creditors cannot ask you for another payment.
- Your credit report updates, showing the proposal as completed.
- You can start rebuilding credit right away, often with tools like a secured credit card or small personal loan.
- Many people qualify for car loans and other credit sooner than they expect, as long as they rebuild slowly and responsibly.
- You keep all your assets, because they were never part of the proposal.
Completing a consumer proposal gives you long-term stability and a fresh financial start. Most people feel proud of reaching this milestone and relieved to know their debt is finally behind them for good.
How to Start Your Debt Relief Plan
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.
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: Will a consumer proposal affect my credit score?
A. Yes, a consumer proposal will affect your credit score, but it’s usually not as damaging as people think. On your credit report, it shows as an R7 rating, which means you are paying back debt through a special arrangement. This is still better than bankruptcy, which shows as an R9.
The proposal stays on your report while you’re in it and for up to three years after it’s completed. Your credit score may not be that good now, and doing something proactive can only improve your situation.
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.
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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Rise Above Your Debt!
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.
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