Consumer Proposal & Bankruptcy Trustee in Newmarket, Ontario

Contact us for free debt relief advice.

Contact us now!

  • This field is for validation purposes and should be left unchanged.

Selecting the Right Debt Solutions Professional in Newmarket, Ontario

Many Canadians are struggling under the burden of debt and are looking for effective debt relief options, whether due to an economic downturn or unforeseen circumstances. Debt consolidation leaves you with the total debt amount to pay back. At the same time, bankruptcy may impact assets you would otherwise be able to keep, so a consumer proposal is an attractive option to deal with your debt.



What is a Consumer Proposal?

A Consumer Proposal is a federally regulated, legally binding process overseen by the Office of the Superintendent of Bankruptcy. It is an alternative to declaring personal bankruptcy and can only be facilitated by a Licensed Insolvency Trustee. Your income and assets largely determine the repayment amount. The essential advantage of a Consumer Proposal is its potential to reduce unsecured debt by up to 80%.

The Licensed Insolvency Trustee will assess your financial situation and propose a monthly payment within your means. This proposal is then sent to your unsecured creditors, and if they accept it, the agreement becomes legally binding. The Consumer Proposal has a maximum repayment period of five years, but you have the flexibility to settle it earlier. Upon filing the proposal, all legal actions against you, such as wage garnishments or harassing calls from collection agencies, will cease.

In addition to the substantial debt reduction, a Consumer Proposal can lead to lower monthly payments, the cessation of interest charges, and the consolidation of unsecured debts into a single monthly payment.

What Debts are Included in a Consumer Proposal?

A consumer proposal covers most unsecured debt. This includes most types of debt not secured by an asset, such as a house or car. Generally, the following can be included in a consumer proposal:

  • Credit card debt
  • Personal loans – this includes lines of credit, consolidation loans or renovation loans, as long as no assets have been used to secure the debt.
  • Payday loans
  • Student loans – if you have ceased to be a student at least seven years ago
  • Income tax debt – this includes amounts owing for personal income tax (including penalties and interest), GST debts, Canada Child Benefits overpayments, CPP and OAS overpayments.


Is a Consumer Proposal the Right Option for Me?

A consumer proposal may be suitable for you if:

  • You have debt less than $250,000, excluding the mortgage on your principal residence
  • You are insolvent, meaning you are unable to pay your monthly obligation
  • You want relief from wage garnishments, collection calls and accumulating interest
  • You want to keep assets that may not be protected in a bankruptcy

Alternatives to Consumer Proposal

Given the array of debt relief choices, it’s crucial to thoroughly examine all potential solutions to identify the most suitable one for your financial circumstances.


Bankruptcy, also a legal process managed by a Licensed Insolvency Trustee, involves the assignment of a trustee to your bankruptcy case. This trustee assumes control over your assets (with some exceptions), manages your affairs, and oversees the progression of your bankruptcy obligations. These obligations encompass mandatory credit counselling sessions and monthly reporting of your income and expenses. Upon completing these duties, you achieve debt discharge after either 9 or 21 months.

Debt Management Plan (DMP)

In a DMP, a non-profit credit counsellor evaluates your debts and devises a multi-year repayment plan spanning three to five years. The proposed plan is then presented to your creditors, and if accepted, you make a single monthly payment to the credit counselling agency. The credit counsellor may negotiate a reduction in the interest on your debt, directing the savings toward debt repayment.

It’s essential to recognize that a DMP does not entail debt reduction or cancellation; you must still settle your entire debt. 

Significantly, this differs from a consumer proposal.

Consolidation Loan

A debt consolidation loan involves merging multiple small loans or debts into a new single loan. This service serves various purposes, such as paying off smaller debts or consolidating higher-interest debts into a single payment with a lower interest rate spread over an extended period.

However, it’s important to note that this approach doesn’t eliminate your debt but makes it more manageable. Additionally, eligibility for a consolidation loan requires an application and qualification process.

Ask us about bankruptcy options

See What Your Debt Repayments Might Look Like

Our debt calculator provides a comparison of what your monthly debt repayment might look like under different debt relief options including a debt consolidation loan, debt management plan and consumer proposal



Serving Newmarket and Nearby Areas

Your Trusted Partner for Debt Relief in Newmarket, Ontario


Book a free, no obligation consultation with us today!

  • This field is for validation purposes and should be left unchanged.