Debts included in a consumer proposal

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Which debts are included in a consumer proposal

Consumer proposals deal with unsecured debt. That is anything that did not require the security of an asset like a house or vehicle. These include:

  • Credit cards
  • Personal loans
  • Payday loans
  • Lines of credit
  • Income tax
  •  Some student loans

If this total debt is less than $250,000, you are eligible to file a consumer proposal in Ontario.

Mortgages on the principal residence is excluded.

If you are interested, contact us to discuss a Division 1 proposal if you don’t qualify for a consumer proposal.

Secured Debts

Secured debts are those that are guaranteed repayment by an asset, like a house or automobile, and are excluded from consumer proposals. If you file a consumer proposal, you can choose to either continue to pay the secured creditor to retain title to the asset, or you can stop those payments and surrender the asset. That means the bank, credit union or other financing agency will take possession of the asset, like a house or automobile, and then resell it to recover the loan.

Secured creditors are notified when a consumer proposal is filed, although they are not involved in the agreement.

Secured loans include:

  • Vehicles secured by the car, truck, motorcycle or recreational vehicle
  • Mortgages secured by the real estate

If you do not want to surrender your asset, your consumer proposal amount can be adjusted to help cover the amount due.

Financial struggles need not be permanent. A consumer proposal can help restructure your repayment schedule and get you out of debt.

Our counseling staff are able to present you with the options for repayment and help you decide the best course of action.

Don’t wait.

Contact us now to help resolve your financial issues.

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


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