Consumer Proposal Toronto: Write Off Unaffordable Debt

Sleep better by writing off debt with a consumer proposal in Toronto.

  • Reduce your debt
  • Lower your bills
  • Freeze interest
  • Stop collections
  • Protect your assets
Check if you qualify

It only takes 30 seconds and it's free.

Sleep Better With a Consumer Proposal Toronto

What is a consumer proposal?

The rising cost of living is forcing many Canadians to choose between buying food and paying their bills.

If you cannot keep up with soaring prices and struggle to make your debt repayments, filing a consumer proposal in Toronto could change your life.

Thanks to government legislation, a consumer proposal allows you to settle your debt for less than is owed and repay what you can afford in single monthly payments with zero interest.

You could write off up to 80% of your debt and resolve your financial problems for good.

Reduce your debt by up to 80% with consumer proposal.

All collection calls, wage garnishments, and legal action stop.

Collection calls, wage garnishments and legal action stop.

You can spread your proposal payments over five years, which lowers your monthly payment, but you can complete your proposal at any time without any penalties or interest.

A consumer proposal can be spread over five years.

Most unsecured debts, such as credit cards, loans, tax debts, payday loans, utility bills and lines of credit, can be included.

If you have secured debts, you can keep paying them or give up the asset to the lender. Any outstanding debt is added as unsecured debt to your proposal.

You can include student loans in a consumer proposal if you’ve been out of school for seven years or more.

A consumer proposal combines all your bills into one monthly payment.

A Licensed Insolvency Trustee is the only person who can administer consumer proposal services in Toronto. Use the form below to get a free call from a local trustee to see if you qualify.

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Pros and cons of a Toronto consumer proposal

A consumer proposal is a popular debt relief solution, but it might not be the right move for you. Here are the pros and cons of a consumer proposal.

Advantages of a consumer proposal

  • Pay less than you owe.
  • Affordable monthly payment.
  • Keep your assets, like your house and car.
  • Zero interest.
  • No hidden fees.
  • Stop collection calls, wage garnishments and legal action.
  • Avoid personal bankruptcy.
  • Legally binding on creditors.
  • Debt free within five years.

Disadvantages of a consumer proposal

  • You must have enough money to make monthly payments.
  • Negatively affects your credit score.
  • Secured debts cannot be included.

It’s Toronto’s best debt forgiveness program

Two formal debt forgiveness programs in Canada: bankruptcy and a consumer proposal.

A consumer proposal is the only legal way to seek debt forgiveness without filing for bankruptcy.

File a consumer proposal

Erase your debt by filing a consumer proposal.

  • Lower your bills
  • Keep your assets
  • Freeze interest
  • Stop collections
  • Reduce your debt
Check if you qualify

It only takes 30 seconds and it's free.

How popular are consumer proposals in Toronto?

Consumer proposals are hugely popular. 2,834 Canadians filed one in the second quarter of 2022 alone.

Most Torontonians choose a consumer proposal over bankruptcy.

What does a consumer proposal cost in Toronto?

The cost of a consumer proposal depends on the amount of debt, the creditors involved, your income, and whether you have assets.

  • Pay what you can afford.
  • No upfront fees.
  • You pay exactly what your creditors agree to.
  • The amount never changes, even if your income increases.
  • Trustee fees are paid from your proposal at no additional cost.

Creditors may expect a percentage of the debt to be paid back. If this is your major creditor, you may need to offer more money to ensure they accept your offer.

You must offer your creditors more money than they would receive if you declared bankruptcy.

Consumer proposal cost

Use the consumer proposal calculator to estimate what your monthly payments might be.

Will creditors accept my offer?

Creditors must vote to accept your offer, each creditor having one vote per dollar owed. A majority vote amongst creditors is needed for the proposal to be accepted.

Some creditors may attach additional terms before they accept your proposal, but your trustee will ensure your offer has the best chance of success.

Once accepted, the agreement is legally binding for all of your creditors.

Protect your assets in a consumer proposal

The great thing about a consumer proposal is that you can protect your assets, including your home, car, savings and tax refunds.

Eliminate debt but protect your assets such as your home car and savings.

Secured assets aren’t affected as long as you continue making payments towards them.

Your home in a consumer proposal

You can protect your house in a consumer proposal. A Licensed Insolvency Trustee will calculate the amount you need to offer your creditors to protect your home equity.

If you have enough equity to cover your debts, you pay your entire debt in a consumer proposal, with the benefit being that payments are interest free.

Consumer proposal qualifying criteria

You may qualify for a consumer proposal in Toronto if you meet the following criteria:

  • Your total debt is less than £250,000 (excluding your mortgage).
  • You are unable to pay your debts.
  • After bills, you can afford to make a monthly payment towards your debt.

You must include all of your unsecured creditors to file a consumer proposal. To complete the process, you must attend two credit counselling sessions.

Get debt relief

Free consultation with a Licensed Insolvency Trustee by video, phone or in person.

  • Experienced trustees
  • Local offices
  • Personalized plan
  • No fees
Get started

It only takes 30 seconds.

How does a consumer proposal impact your credit?

A consumer proposal will negatively impact your credit score, but it can help you repair your credit faster than you could on your own.

7 credit rating for credit accounts in a consumer proposal

At this point, your priority should be to deal with your debts. A good credit score is worthless if you have unmanageable debt.

Lenders want to know if you can repay the loan and look at your debt-to-income ratio to help them decide.

Credit reporting agencies will add your proposal to your credit report. It remains there for either three years after discharge or six years from the date you filed (whichever is sooner).

How to file a consumer proposal in Toronto

You must meet with a Licensed Insolvency Trustee to file a consumer proposal. Your trustee will offer unbiased advice based on your unique financial situation and determine if a consumer proposal suits you.

A trustee will work with you to create a payment plan that your creditors will accept. Once they do, it becomes legally binding.

The consumer proposal process.

A LIT’s role is to manage your proposal and help you through the consumer proposal process.

Beware of debt settlement companies that advertise debt relief programs in Canada. These are unlicensed and unregulated firms that cannot file a consumer proposal – only a Licensed Insolvency Trustee can do so.

Licensed Insolvency Trustees can stop collection calls, lift wage garnishments, end all legal action and freeze interest on debts.

Consumer proposal Toronto: Get debt help

The next step is to get in touch with a Licensed Insolvency Trustee in Toronto for expert financial advice. They will discuss the best way to settle your debts.

Get debt relief

Free consultation with a Licensed Insolvency Trustee by video, phone or in person.

  • Experienced trustees
  • Local offices
  • Personalized plan
  • No fees
Get started

It only takes 30 seconds.

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Stop harassment from creditors and end wage garnishments. Freeze interest and reduce debt to a manageable level so you can start living a better life.

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  • Personalized plan
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