Consumer Proposal Services in Ontario
Reduce your debts by up to 70% while keeping all your assets
Consumer proposals settle a portion of what you owe based on what you can afford. You retain everything you own, and receive immediate relief from collection calls. Goth and Company delivers federally regulated consumer proposal services in Ontario as Licensed Insolvency Trustees.
Trusted Consumer Proposal Services in Ontario Since 1993
Filing a consumer proposal in Ontario requires expertise you can rely on. Choosing the right Licensed Insolvency Trustee makes all the difference, especially for Ontario residents in diverse industries from manufacturing and automotive to technology and financial services.
Goth and Company is a Licensed Insolvency Trustee firm that follows the federal legal process established under the Bankruptcy and Insolvency Act. We’ve been incorporated since 1993 and currently serve Ontario residents through various economic cycles including recessions and industry transitions.
Goth and Company offers immediate creditor protection through federally regulated consumer proposals, helping Ontario families preserve their homes while eliminating overwhelming debt. We serve consumer proposal clients in Ottawa and provide consumer proposal services in Toronto.
Consumer Proposal & Debt Relief Services in Ontario
Consumer proposals are the preferred alternative to bankruptcy for individuals who can manage to pay a portion of their debts.
When should you consider alternatives? If you have no income or prefer faster debt elimination, other options might be more suitable.
Goth and Company provides expert administration with a 99% acceptance rate for consumer proposals based on our office experience over decades of practice.
Consumer proposals reduce most unsecured debt by up to 70%. Once filed, creditors must deal directly with your Licensed Insolvency Trustee.
Debts Reduced by Consumer Proposals:
- Credit Card Debt (all major banks and credit unions)
- Income Tax Debt (Canada Revenue Agency)
- Bank Loans and Lines of Credit
- Payday Loans and Student Loans (7+ years)
- Phone Bills and Utility Bills
- Personal Loans and Collection Accounts
Can you include student loans in consumer proposals? Only if completed studies more than 7 years ago. Recent student loans survive consumer proposals.
Note: Secured debts like mortgages and car loans cannot be included but you maintain these through continued payments. Government fines, child support, and recent student loans are not extinguished.
What is a Consumer Proposal?
Understand the basics of consumer proposals and how they work.
Consumer Proposals vs Bankruptcy
How are they different? How are they the same? More information here…
Consumer Proposals & Your Credit
Learn how to get out of debt and build up a strong credit history.
Debt Consolidation With A Proposal
How does a consumer proposal compare to other consolidation options?
Who Should Consider Consumer Proposals in Ontario?
Consumer proposals work best for individuals who cannot afford to pay debts in full but have sufficient income to pay a portion over time. The top signs you should discuss consumer proposals include:
- Cannot afford minimum payments on all debts simultaneously
- Have significant assets to protect (Ontario home, vehicles)
- Owe substantial tax debt to Canada Revenue Agency
- Want to avoid bankruptcy and its consequences
- Have steady income but overwhelming debt load
- Collection calls causing stress and affecting work
- Debt payments consuming a large portion of income
- Work in stable industries with regular employment
Particularly effective for Ontario residents in manufacturing, automotive, technology, healthcare, finance, government, and professional services who need structured debt reduction without career interference.
When Consumer Proposals Are Not Suitable
Not suitable if you have no regular income, no assets to protect, need immediate elimination (bankruptcy 9-21 months vs up to 5 years), or cannot commit to consistent payments over time.
Common mistakes people make with consumer proposals include unrealistic budgeting, not disclosing all debts, missing payments without communication, and not following through with counselling requirements.
Who Decides if a Proposal is Acceptable?
For a proposal to be accepted we need to have a majority of the creditors, so there is a formal voting process that takes place. Your unsecured creditors will have 45 days to determine if the proposal is acceptable and as long as we have a majority of the creditors cooperating with the proposal, regardless of which creditors we are dealing with, the consumer proposal is automatically binding on all the creditors involved.
Once the proposal has been accepted by the creditors it is also approved by the court, but this is largely a rubber stamp, as long as the creditors are happy and the proposal has been written properly based on valid information, the court is happy to ratify the creditors’ decision.
Important Considerations for Ontario Residents
Consumer proposals work best with steady income, desire to keep assets, and ability to commit to monthly payments over your chosen term. Success depends on realistic budgeting and commitment to completion over the full term.
While our acceptance rate reaches 99%, not everyone completes successfully, often due to changing circumstances like job loss or unrealistic initial budgeting. We create payment plans fitting your actual income and Ontario’s economic realities, from Toronto’s expensive housing market to smaller community considerations.
Consumer Proposal Services Across Ontario
Goth and Company provides consumer proposal help for Toronto and Ottawa residents and throughout Ontario. We serve residents in major Ontario communities through our virtual office network and local partnerships.
Our Licensed Insolvency Trustees assist clients seeking debt settlement solutions throughout the province with the same expertise and federally regulated protection available across Canada no matter where you’re located. Our consumer proposal services adapt to local economic conditions and employment patterns affecting Ontario residents. We understand each provinces’ unique industries including forestry, mining, technology, and tourism.
Goth and Company has asset protection expertise that lets Ontario residents keep homes, vehicles, and investments while settling debts for significantly less than owed.
Book Your Free Consultation Today
Goth and Company offers free consultations because we believe every Ontario resident deserves to understand debt relief options without pressure or cost. We’ll explain exactly how consumer proposals work and help determine if it’s the right solution for your situation.
Call today to schedule your consultation. We have convenient Ontario locations and virtual meetings available. We offer flexible scheduling and can begin the process promptly when appropriate for your situation. Our bankruptcy alternatives in Ottawa and bankruptcy alternatives in Toronto help residents throughout Ontario find the best debt relief solution.
Learn how a consumer proposal could work for you!
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Recent Posts About Consumer Proposals
We continually publish new content based on questions and feedback from our clients and visitors.
Will This Clear My Credit Report?
A Consumer Proposal or Personal Bankruptcy Will Clear Up My Credit Report Myth or Fact? Several times a week I get calls from individuals (debtors) who believe that if they go through a consumer proposal or personal bankruptcy their debts will be removed from their...
How Often Do Consumer Proposals Get Rejected?
How Often Do Consumer Proposals Get Rejected? And What Happens If They Are? Consumer Proposals get accepted in our office “eventually” at a rate of 98% or better. This means a combination of acceptance by creditors votes by the initial vote 45 days from the...
Do I Have To Disclose All Of My Debts?
Do I Have To Disclose All Debts In A Consumer Proposal Or Bankruptcy? Why It Matters When a consumer proposal or bankruptcy starts there is immediate protection from the collection action of all unsecured creditors against the debtor. To get this protection, certain...
Can I Make A Consumer Proposal To My Creditors By Myself?
Can I Make A Consumer Proposal To My Creditors By Myself? No, you can’t. But let’s make sure we are both talking about the same thing. If you ask a Licensed Insolvency Trustee (“LIT”) what a consumer proposal is, the LIT will tell you that it is a specific process...
Frequently Asked Questions
Below are commonly asked questions about consumer proposals in Ontario.
What Exactly Is a Consumer Proposal and How Does It Work?
A consumer proposal is a court-sanctioned debt settlement process that lets you negotiate with unsecured creditors while avoiding bankruptcy and keeping all assets.
How it works: Your Licensed Insolvency Trustee files legal documents with the federal government, which immediately triggers a “stay of proceedings” stopping all creditor actions. The mechanisms behind the process include binding creditor votes, mandatory acceptance by majority, and legal protection that prevents creditors from pursuing collection activities.
How long do you pay? You choose up to 5 years maximum, with most Ontario residents choosing terms based on their budget and debt level. You typically offer creditors a reduced amount with immediate creditor protection and interest freezing. Example: $35,000 debt with $200 monthly available could result in a proposal offering a portion of the total debt over several years with no interest. For $500/month we could address debts as high as $70k+. How quickly do creditors stop calling? Collection calls stop immediately upon filing – often within 24 hours.
Who Qualifies and What Happens to Your Credit Rating?
The requirements are: owing less than $250,000 unsecured debt, unable to pay debts in full, sufficient income for monthly payments, Canadian resident. Works well for Ontario professionals in finance, technology, healthcare, and manufacturing workers with steady employment.
What happens to your credit rating immediately? You’ll receive an R7 rating (better than R9 for bankruptcy). This notation stays for either 6 years from filing or 3 years from completing the consumer proposal, whichever is sooner, but many clients see scores improve during the proposal as debts are being addressed.
Will your employer find out? Generally no, unless you are subject to a garnishment in which case we have to advise your employer to stop the garnishment. The documentation needed includes: pay stubs, tax returns, asset/debt lists, budget, bank statements. Most Ontario employers in banking, government, or sensitive positions won’t be notified unless specifically required by your employment contract.
What Debts Are Included and Can You Keep Your Ontario Home?
Can you include all credit cards? Yes! Can you keep your house? Yes! Unlike bankruptcy, consumer proposals let you keep all assets including your Ontario home, vehicles, RRSPs, investments.
The included debts are: credit cards, bank loans, lines of credit, payday loans, income tax debt (CRA), student loans (7+ years), utility bills, phone bills, personal loans. The excluded debts are: secured debts (mortgages, car loans), court fines, fraud debts, child support, recent student loans.
What happens to tax refunds? CRA may setoff a portion of your unfiled or next tax refunds, but you will start to receive tax refunds the year after you file. Monthly payments vary based on your income, expenses, and total debt amount. Ontario residents often keep significant assets including homes in Toronto’s expensive market or Ottawa’s government sector properties.
Benefits and What If You Can’t Make a Payment?
What if you can’t make a payment one month? Contact your trustee immediately before missing payment. We can arrange temporary solutions or deferrals. Missing three payments automatically cancels your proposal.
The benefits are: keep all assets, pay only a portion of what you owe, stop interest immediately, consolidate payments, immediate creditor protection, avoid bankruptcy. The advantages over bankruptcy include: maintain assets, better credit impact (R7 vs R9), keep tax refunds.
The advantages over debt consolidation are: debt reduction vs reorganization, legal protection, include tax debt, no good credit requirement, bind all creditors. Particularly valuable for Ontario residents with high-value assets in expensive housing markets like Toronto and Ottawa.
What Are the Risks and What If You Lose Your Job?
Can you get out early if you get money? Yes! Pay off anytime without penalty, removing credit notation sooner. Many Ontario clients complete early using bonuses, tax refunds, or raises.
What if you lose your job? Contact trustee immediately – we can arrange deferrals or amendments. What if you get a raise? Small increases don’t affect terms; significant increases might lead to creditor requests for higher payments.
The risks are: automatic cancellation if missing three payments, or creditor rejection (though rare with our 99% acceptance rate). The limitations include: not suitable when you can’t afford any payments, debts mostly secured, need immediate elimination, or irregular income. Our proposals maintain a 99% acceptance rate with creditors due to realistic offer preparation.
Joint Debts and What Happens If Creditors Reject?
How do consumer proposals work with joint debts? Your proposal only eliminates your responsibility – the other person remains fully responsible for the entire debt amount.
What happens if creditors reject your proposal? We can amend terms, increase payments, or explore alternatives. Our 99% acceptance rate comes from understanding creditor expectations and realistic proposals.
How do consumer proposals affect your spouse? No direct impact on spouse’s credit unless they’re jointly responsible for debts. However, lenders may consider household income for future applications.
Travel, Credit Rebuilding, and Life Changes in Ontario
Can you travel? Yes, regular travel permitted without trustee permission. How do you rebuild credit? Start with secured or low-limit credit cards, make small purchases, pay monthly, keep balances under 30%.
The timeline involves: document preparation takes time, then filing, 45-day voting period, then payments over chosen term. Marriage doesn’t affect obligations; divorce can be complex with joint debts. Moving provinces possible with trustee transfer.
When should you consider this option? Best for Ontario residents with steady income, significant assets to protect, and ability to make consistent payments over 2-5 years. The timing is ideal when collection calls are affecting work performance or family stress levels.
How to File a Consumer Proposal – Next Steps
The process begins with free consultation assessing your situation and reviewing options. We can typically meet within a reasonable timeframe for Ontario residents. The steps are: gather documentation, prepare proposal documents, file with creditors and government, begin 45-day voting period.
Your responsibilities include: monthly payments, two counselling sessions, provide updates if requested, maintain trustee communication. Consultation to filing can be done in as little as one week or sometimes sooner in very urgent situations. Creditor protection begins immediately upon filing.
The costs are regulated by the federal government with fees included in your monthly payments to creditors. No upfront fees or hidden charges – everything is transparent and government-regulated for Ontario residents.
