Consumer Proposal & Bankruptcy Trustee in Oshawa, Ontario

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Selecting the Right Debt Solutions Professional in Oshawa, Ontario

Many Canadians struggle with the weight of debt, whether due to economic downturns or unforeseen circumstances. Amidst choices like debt consolidation, which requires repayment of the total debt amount, and bankruptcy, which may jeopardize assets you would typically retain, a consumer proposal emerges as an appealing option to address your financial obligations.



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 provides an alternative to declaring personal bankruptcy and is exclusively administered by a Licensed Insolvency Trustee. Your income and assets predominantly influence repayment amounts. The significant advantage of a Consumer Proposal lies in its potential to alleviate unsecured debt by up to 80%.

The Licensed Insolvency Trustee will evaluate your financial standing and devise a monthly payment aligned with your financial capacity. Once presented to your unsecured creditors, acceptance of the proposal will make the agreement legally binding. While the Consumer Proposal allows a maximum repayment period of five years, you retain the flexibility to settle it earlier. All legal actions against you, such as wage garnishments or intrusive calls from collection agencies, are stopped immediately upon submission.

Beyond the considerable debt reduction, a Consumer Proposal can result in reduced monthly payments, cessation of interest charges, and the consolidation of unsecured debts into a singular monthly payment.

What Debts are Covered in a Consumer Proposal?

A consumer proposal encompasses most unsecured debts, which include various debt types not secured by assets like a house or car. Typically, the following can be included in a consumer proposal:

  • Credit card debt
  • Personal loans, including lines of credit, consolidation, or renovation loans, provided no assets secure the debt.
  • Payday loans
  • Student loans if you have ceased to be a student at least seven years ago
  • Income tax debt, encompassing amounts owed 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 might be a suitable option if:

  • Your debt is less than $250,000, excluding your principal residence’s mortgage.
  • You are insolvent, meaning you cannot meet your monthly obligations.
  • You seek relief from wage garnishments, collection calls, and accruing interest.
  • You aim to retain assets that may not be safeguarded 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.

Given the diverse array of debt relief options, it is critical to thoroughly evaluate all potential solutions to determine the most appropriate one for your financial circumstances.


Bankruptcy, also overseen by a Licensed Insolvency Trustee, involves assigning a trustee to manage your case. This trustee takes control of your assets (with exceptions), oversees your affairs, and supervises your bankruptcy obligations, including mandatory credit counselling sessions and monthly income and expense reporting. Upon fulfilling these duties, you attain debt discharge after either 9 or 21 months.

Debt Management Plan (DMP)

In a DMP, a non-profit credit counsellor assesses your debts and crafts a multi-year repayment plan spanning three to five years. The proposed plan is presented to your creditors, and upon acceptance, you make a single monthly payment to the credit counselling agency. The credit counsellor may negotiate a reduced interest on your debt, redirecting the savings toward debt repayment.

It’s crucial to note that a DMP does not involve debt reduction or cancellation; you must still settle your entire debt. Importantly, this distinction sets it apart from a consumer proposal.

Consolidation Loan

A debt consolidation loan combines multiple small loans or debts into a new single loan. This service achieves various goals, 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 is essential to understand that this approach does not eliminate your debt but makes it more manageable. Moreover, eligibility for a consolidation loan requires an application and qualification process.


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



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