Debt Relief in Ontario – Consumer Proposals

Table of Contents

A Fresh Financial Start

Residents of Ontario who find themselves insolvent – that is they lack the resources to repay their existing debts in a reasonable period of time – may be eligible for a federally-legislated debt relief program called a consumer proposal.

A consumer proposal is a legal agreement between a debtor and their unsecured creditors to repay a portion of their debt over a period of up to 5 years. Upon successful completion, they are released from their unsecured debt.

Because it is a legally-binding agreement that this covered by the Bankruptcy and Insolvency Act – a consumer proposal offers a number of features and protections that are simply not available through other non-regulated programs.

How Does It Work?

In Ontario, only bankruptcy trustees can file and present consumer proposals to creditors. Bankruptcy trustees are licensed by the Superintendent of Bankruptcy, undergo extensive training, and are bound by the law and regulated codes of conduct that ensure the process is fair to all parties.

To make certain that everyone who needs to speak to a trustee has access, the initial consultation is free. During the consultation, a person’s finances are reviewed in full and all of their viable options for getting out of debt are discussed.

While most unsecured debts such as credit cards, payday loans, income taxes, utility bills, rent, etc are covered in a proposal, there are a number of exceptions that the trustee will review in detail.

The trustee determines if a person is insolvent and eligible for a proposal – however it is up to the person to decide whether or not they wish to file.

If the person decides to file, a proposal is prepared, filed with the Office of the Superintendent of Bankruptcy and submitted to the unsecured creditors for approval. When over 50% of the voting unsecured creditors (by dollar amount) agree to the proposal, it becomes binding on all of the unsecured creditors. Note – most proposals are accepted by the creditors.

Protection from Unsecured Creditors

The consumer proposal provides protection from the all the unsecured creditors in the proposal, whether they voted for the proposal or not. By law these creditors must:

  • Stop all collection calls
  • Stop all legal action
  • Stop charging interest

In exchange – the person who has filed the proposal must honour all the terms of the proposal including:

  • Make all of the required monthly payments to their trustee for disbursal to creditors.
  • Attend credit counselling sessions

Flexibility of Payment Scheduling

For people who do not have a traditional monthly income, but qualify for a proposal – the agreement may be structured to meet their non-standard payment requirements.

If a person’s income increases, or they experience a financial windfall during the proposal, they have the option of paying off the proposal early. Note – an increase in income does not affect the terms of the proposal.

If a person’s income decreases, and they are unable to make their payments, it may be possible for the trustee to renegotiate the proposal.

Find Out More

If you live in the Toronto area and are considering a consumer proposal you are welcome to call us at 416-498-9200 to book a free consultation at one of our 6 office locations. Our caring, licensed professionals will meet with you in a professional and supportive environment – and discuss all of your options for getting out of debt.

If you live outside the Toronto area, check with the Superintendent of Bankruptcy to find a licensed bankruptcy trustee in your area.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

Christine Sylver was very helpful to my situation. No question asked, she went above and beyond just to give me the options that I need to solve my problems. She explained and made me understand my options. Thank you Christine! Everything was done in a week. Regards, to Richard Sklar for explaining everything further to me. 😊
Kris
1685201109
I was blown away by how kind and empathetic Christine and David were. I came into the process expecting to feel embarrassed, but they were so helpful and unquestionably supportive, they made the whole experience a positive thing. On top of that, Christine found a solution for me that was better than I ever could have imagined. I highly recommend Christine, David, and colleagues to anyone.
Mary M
1684189795
Christine Sylver has been very efficient in working with me in all aspects toward developing a very favourable consumer proposal which meets my financial budgeting very nicely. She also exhibited a very positive pro client attitude and was every pleasant to communicate with. Richard Sklar also demonstrated a very positive pro client attitude in explaining in detail all aspects. All great!!
Rob Hultgren
1683919919
Dealing with Christine was a real pleasure.She was very understanding professional and knowledgeable she answered all my questions.I left feeling relieved a big burden was lifted from my shoulders
John Horan
1683830383
Very happy I got in touch with Jackie! She has been a great help and a pleasure to work with! I highly recommend Jackie if you need help getting out of financial debt.
Hailey Cascagnette
1683647325
I had the pleasure of working with Jackie and she made the experience very easy and was very honest which I appreciated as I was extremely nervous to go through with the process. Any questions or concerns I've had after our meetings were answered no problems and although it's been a few weeks I can honestly say I've never felt so stress-free. Very thankful for Jackie.
Cassandra Arevalo
1683644364
Very considerate of how people can sometimes make mistakes and need help to get things back on track. Great team of people. Thanks to Jacqueline for all her help.
Kevin Chase
1683498014
My mother told me about this firm because they helped resolve her situation nearly 25 years ago. I had the pleasure of working with Christine Sylver. I should’ve done this years ago but I am where I am and it is what it is. Extremely courteous, professional and understanding. I hope to never need their services again but they would be my first call! A+
Patrick Martel
1683324165
Jerry was extremely thorough and ensured that as a client, I understood all of my options and their repercussions. He offered his professional advice best suited for my situation and he is amazing at his work. Thank you Jerry! :)
Stephanie Belanger
1683317517
Great experience with Jerry and staff. Thank you.
Harold Hutchings
1682737038
js_loader
DS david skalr icon

Book your free consultation.

Call 1-844-962-9200 or fill out the form below. We’ll do the rest.

Contact Us