Consumer Proposals in Ontario

  1. Home
  2.  » 
  3. Solutions
  4.  » Consumer Proposals
  • Contact Us Today

The Consumer Proposal

A consumer proposal is a tool for those who would like to pay off debt. It will offer the creditors the repayment of your debt but at terms that will be more favorable to you, the person who owes them money.

It is used to reduce or eliminate interest payments, reduce the balance of the loan, or extend the duration of the repayment.


  • Stop Wage Garnishment
  • Stop Lawsuits
  • Stop Creditors from Calling You

What Exactly Is A Consumer Proposal after all?

A consumer proposal is a formal offer to your creditors. It shows that you want to honor your obligation to pay the debt, especially before it becomes unmanageable. However, you need some leeway to accomplish this.

Who Can File A Consumer Proposal For You?

Only a Licensed Insolvency Trustee (LIT) can develop a consumer proposal. It is a formal offer that is binding on both you and the creditor and is administered by the LIT. Usually, it consists of an offer to pay the creditors a percentage of the balance, to extend the time to pay, or both. It is limited to five years. You make the payments through the LIT, who, in turn, sends the money to your creditors.

Is A Consumer Proposal Right For You?

Not necessarily. If you owe less than $1,000 or over $250,000, it is unlikely that you will fall under the qualifications. However, mortgage debt, and other exclusions, may make you a viable candidate. In order to decide if you qualify and if the action is appropriate for your circumstances, contact a Licensed Insolvency Trustee.

Contact our office for more detailed information about this process and your situation.

Bankruptcy is not your only option

Bankruptcy is not the only solution when you are in financial difficulties. Canada offers a number of options; among them is the Consumer Proposal. However, that is not the only alternative.

In order to determine the best course of action, you should arrange an appointment with one of our accredited debt counsellors. You can handle this over the phone, video conference or in person.

It is free, and you are under no obligation to proceed. All of our meetings are completely confidential and we in no way judge your actions.

Articles we prepared on Consumer Proposals in Ontario

Can a consumer proposal affect my partner?

Can a consumer proposal affect my partner?

If you and your spouse constantly struggle to manage your debt, consider discussing debt management options available to you with a Licensed Insolvency Trustee (LIT). In this article, we highlight the Consumer Proposal, one of the debt management options, and the...

Can you file twice for a consumer proposal in Waterloo?

Can you file twice for a consumer proposal in Waterloo?

You may have previously cleared debt by filing a consumer proposal in Waterloo and have again found yourself in another debt that requires you to file another consumer proposal to pay it off. When you find yourself needing another consumer proposal to pay off debt...

Home Equity Loans VS Consumer Proposals

Home Equity Loans VS Consumer Proposals

Introduction You might be hoping for a way to consolidate your debt if you are struggling with credit card debt or paying multiple loans every month. A home equity loan might be the best option for you. Although there are various uses to home equity loans, homeowners...

Consumer Proposals vs Personal Bankruptcy: Which is better?

Consumer Proposals vs Personal Bankruptcy: Which is better?

Introduction Most citizens file for personal bankruptcy or consumer proposals in Canada, making them the best insolvency options for a person facing financial troubles. Consumer Proposals and Personal Bankruptcies are under the Bankruptcy and Insolvency Act. Each of...

Are you dealing with Debt problems? Solutions are here.

Are you dealing with Debt problems? Solutions are here.

Debt Problems: Introduction Debt problems are not always sudden. Even so, it's a fact that financial difficulties can arise suddenly and unexpectedly, like the loss of a job or a vehicle breakdown. Debt problems can be of all sizes, from being a few hundred dollars...

We can help you determine whether a consumer proposal is right for you

A Consumer Proposal is your Chance
for a Fresh Start.

Call for a free and confidential consultation at


× How can I help you?