Debt Consolidation
in Ontario
Consolidate your debts by up to 70% through government-approved programs
Debt consolidation involves combining multiple debts into a single payment arrangement while potentially reducing the total amount owed. Goth and Company’s Licensed Insolvency Trustees provides government-regulated debt consolidation services of Ontarians that reduce overall debt and stop collection calls within days.
Canadian Debt Consolidation Services You Can Trust
Debt consolidation in Canada is a process for combining debts into one payment which can help to eliminate or reorganize most unsecured debts faster. Once you begin with a government-regulated debt consolidation process, creditors must deal directly with your Licensed Insolvency Trustee instead of contacting you directly.
Filing for bankruptcy or filing a consumer proposal are the more popular debt consolidation options in Canada. Not all debt consolidation methods are equal and have their own process, which is why choosing the right Licensed Insolvency Trustee can make all the difference in your debt relief journey.
As Licensed Insolvency Trustees incorporated since 1993, Goth and Company takes a personal approach to understand your unique financial situation and guides you through every step. We review all of your debt consolidation options with you and ensure you understand how each approach will impact your life in Canada.
When you’re ready to take control of your financial future, you choose the path that makes the most sense for your situation. Goth and Company currently provides debt consolidation services such as bankruptcy or consumer proposals throughout Canada, having guided thousands of Canadians through successful debt elimination.
What Exactly Is Debt Consolidation?
Debt consolidation means combining multiple debts into a single payment arrangement. Instead of juggling five credit card bills, two bank loans, and tax debt separately, you make one monthly payment. This simplifies your finances and can significantly reduce costs.
Government-regulated debt consolidation through Goth and Company provides legal creditor protection. This means collection calls stop, wage garnishment ends, and interest charges freeze immediately upon filing.
Your debt consolidation options include consumer proposals that reduce debt by up to 70% while preserving all assets, personal bankruptcy that eliminates most debts in 9-21 months, traditional loans that combine debts requiring full repayment, and debt management plans with extended payment terms through counseling.
Only government programs can legally reduce what you owe. Traditional options reorganize debt without reduction.
Who Should Consider Debt Consolidation Options in Canada?
Debt consolidation options are for individuals and families who struggle to manage multiple debt payments or want to reduce their total debt burden. Here are the top signs you should be discussing debt consolidation with a Licensed Insolvency Trustee:
- Making only minimum payments on multiple credit cards
- Using one credit card to pay another
- Avoid answering the phone afraid of harassing creditors
- Owe CRA back taxes for multiple years
- Wages garnished for unpaid bills
- Turned down multiple times for extended credit
- Repeatedly use cash advance or payday loans
- Skip payments or are behind on accounts
Debt Consolidation Options & Relief Services
Several debt consolidation alternatives exist in Ontario. Traditional debt consolidation through bank loans reorganizes debt without reducing amounts owed, while Licensed Insolvency Trustees provide immediate creditor protection through federally regulated debt consolidation that actually eliminates debt.
Consumer Proposals – Reduce Debt While Protecting Assets
Consumer proposals consolidate all unsecured debts into one monthly payment while reducing total debt by up to 70%. You keep your home, vehicle, and investments while paying only what you can afford.
Here’s a real example: Sarah from Ottawa owed $38,000 in credit cards, bank loans, and CRA taxes. Her minimum payments totaled $1,100 monthly, but she only had $550 after living expenses. Through a consumer proposal, she paid $16,000 over five years at $280 monthly, saving over $820 per month immediately.
Personal Bankruptcy – Complete Debt Elimination
Personal bankruptcy eliminates most unsecured debts completely within 9-21 months for first-time filers. Goth and Company offers debt elimination through bankruptcy as Ontario’s fastest solution when you cannot afford any payment plan.
Bankruptcy consolidates all qualifying debts into one legal process. What this means is complete debt freedom rather than partial repayment, giving you the quickest path to financial peace of mind.
Traditional Bank Loan Options
Bank loans that combine multiple debts into a single payment. These require good credit and stable income but don’t reduce the total amount owed – you still pay 100% of your debt plus interest.
How to Choose Your Ontario Debt Consolidation Option
The right debt consolidation choice depends on your income, debt amount, and timeline preferences. Here’s how Ontario residents decide which path provides the best relief:
Choose consumer proposals when you have steady income but cannot pay debts in full. Choose bankruptcy when you cannot afford any payment plan and need complete elimination quickly. Consider traditional loans only when you have excellent credit and can qualify for lower rates.
Consumer proposals work best when you have regular income but cannot pay debts completely, want to keep your home, vehicle, and investments, owe less than $250,000 in unsecured debt, can afford $200-500 monthly payments, and prefer avoiding bankruptcy’s stigma.
Bankruptcy works better for consolidation when you cannot afford any monthly payment plan, want fastest debt elimination (9-21 months), have minimal assets to protect, and need immediate relief from overwhelming pressure.
Traditional consolidation loans work when you have good credit (650+ score typically), can qualify for rates lower than current debts, want to avoid any credit reporting impacts, and have debt-to-income ratio below 40%.
Get Your Free Debt Consolidation Consultation
Dealing with debt may seem overwhelming, but it becomes much easier once you take the first step to find out what options are available.
1
Provide some basic information
Answer a few questions to help us understand what you are dealing with.
2
Speak with a debt specialist
Review all of the available options with an experienced professional.
3
Choose an option
Pick the solution that works best for you and decide when you are ready to move forward.
What Happens During the Debt Consolidation Process
The debt consolidation process might seem overwhelming initially, but that is why we’re here to help. The process becomes much clearer once you understand what happens at each stage. Goth and Company has successfully helped thousands of Canadians like you consolidate and eliminate overwhelming debt.
1. Free Assessment and Review
We’ll review your debts, income, and assets during a confidential meeting. Our Licensed Insolvency Trustee explains all your debt consolidation options and helps determine which approach provides the best outcome for your situation.
2. Choose Your Debt Consolidation Method
When a form of debt consolidation is your best option, such as consumer proposal or bankruptcy, we handle all the paperwork and file with the federal government for consumer proposals or bankruptcy. For traditional consolidation, we help you understand qualification requirements and alternatives.
3. Begin Immediate Creditor Protection
Government-regulated debt consolidation starts immediately – no more collection calls, wage garnishments, or legal actions. We guide you through every requirement to ensure you complete your debt consolidation successfully.
Timeline expectations for each consolidation type:
- Consumer proposals: 3-5 years of payments, early completion allowed
- First bankruptcy: 9-21 months depending on income level
- Traditional loans: Whatever repayment term you negotiate
- Emergency protection: Begins within days of filing
Most Ontario residents see immediate stress relief from stopping collection calls and knowing they have a clear path to debt freedom.
Why Ontarians Choose Goth and Company for Debt Consolidation
Goth and Company has maintained professional licensing and good standing with the Office of the Superintendent of Bankruptcy since 1993, demonstrating our commitment to ethical debt consolidation practices and client success throughout Canada. Our Licensed Insolvency Trustees help you understand your debt consolidation options and find the best path forward.
We understand exactly what creditors expect
- 99% consumer proposal acceptance rate.
- 30+ years of experience
- Federal licensing and regulation
- Transparent, regulated fees
- Comprehensive debt consolidation services
- Personal approach
Taking the first step is like a breath of fresh air
Each month, thousands of Canadians begin their journey towards debt consolidation relief. The initial meeting with a Licensed Insolvency Trustee is often described as a breath of fresh air. Knowing that you have debt consolidation options makes a world of difference.
Since 1993, Goth and Company has helped thousands of Canadians overcome debt and get a fresh start through effective debt consolidation programs.
Goth and Company delivers comprehensive debt consolidation services through federally regulated processes that some debt consolidation consultants simply cannot provide. The importance of choosing a Licensed Insolvency Trustees lies in our legal authority to bind creditors, reduce debt amounts, and provide immediate creditor protection.
Find out if declaring bankruptcy is right for you!
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Frequently Asked Questions
Below are commonly asked questions about Debt Consolidation in Ontario.
What Debts Can Be Consolidated Through Consumer Proposals
Debts eligible for consolidation include credit card balances, personal loans and lines of credit, income tax debt (CRA debt), payday loans, student loans (if 7+ years since graduation), utility bills and phone bills, and medical bills and other unsecured debts.
Debts that cannot be consolidated include mortgage payments, car loans, and other secured debts where assets secure the loan. You continue regular payments to keep these assets.
How Much Does Debt Consolidation Cost in Ontario?
Debt consolidation costs vary by option chosen. Goth and Company provides transparent, government-regulated pricing with no hidden fees or surprise charges.
Consumer proposal costs are included in your monthly payments. Bankruptcy costs depend on your income and assets. All fees are federally regulated by the Office of the Superintendent of Bankruptcy.
First-time bankruptcy with minimal income: $200 monthly for 9 months ($1,800 total). With surplus income, payments increase based on government calculations starting around $4,080 monthly household income for three people.
Consumer proposal costs are built into your offer to creditors. Using Sarah’s example, her $280 monthly payments over five years totaled $16,000 versus $38,000 originally owed – a $22,000 savings.
Traditional consolidation loan costs depend on credit score. Rates range from prime (around 7%) to 20%+ for poor credit. Many Ontario residents needing debt help have already been declined for traditional loans.
What Happens If You Miss Payments During Consolidation?
Missing payments has different consequences depending on your consolidation type. Understanding these risks helps you choose the right option and stay successful.
With consumer proposals, missing payments can lead to proposal failure if not corrected quickly. With bankruptcy, missed surplus income payments can extend your timeline. Traditional loans may trigger collection action immediately.
Consumer proposal payment issues:
- Missing 3 payments triggers automatic failure
- Failure revives all original debts with interest
- Solutions include proposal amendments or switching to bankruptcy
- Temporary hardship extensions may be available
Bankruptcy payment issues:
- Missing surplus income extends your timeline
- Trustee may oppose discharge for non-compliance
- Court applications may be required
- Base payments ($200 monthly) are typically manageable
The key is communicating with your Licensed Insolvency Trustee immediately if financial difficulties arise. Early intervention prevents serious consequences.
What Documents Do You Need for Financial Relief?
Starting debt consolidation requires basic financial information. Goth and Company helps gather missing documents, so don’t let incomplete paperwork delay your relief.
The essential documents include a list of all debts, recent income proof, and monthly expense estimates. We can work with estimates if exact figures aren’t available.
Bring to your consultation:
- List of all creditors with current balances
- Recent pay stubs or income statements
- Tax returns from the last two years
- Monthly living expense breakdown
- Asset values (home, vehicles, investments)
- Bank statements for recent months
- Credit report (if available)
Missing documents won’t prevent starting the process. We help Ontario residents gather information and can provide reasonable estimates based on what you know about your situation.
Bankruptcy Timeline and Protected Assets
Your bankruptcy timeline depends on income and filing history:
- First bankruptcy, low income: 9 months to freedom
- First bankruptcy, higher income: 21 months
- Second bankruptcy: 24-36 months
Ontario protects essential assets including:
- Home equity up to $10,000
- Vehicle equity up to $6,600
- Household items up to $13,150
- Work tools up to $11,300
- All retirement and education savings (RRSPs/RESPs)
- Necessary clothing and medical equipment
Can You Consolidate Debt with Bad Credit?
Yes, government debt consolidation programs don’t require good credit. Unlike traditional loans, consumer proposals and bankruptcy are available regardless of your credit score.
What this means for Ontario residents is that previous missed payments, defaults, or low credit scores don’t prevent qualification for government programs. Your ability to get relief depends on your debt level and income, not your credit history.
Government programs (no credit score requirements):
- Consumer proposals: Available regardless of credit score
- Bankruptcy: No credit requirements whatsoever
- Qualification based on debt level and income only
Traditional options (credit score dependent):
- Bank loans: Typically require 650+ credit score
- Credit union loans: May accept 600+ with collateral
- Private lenders: Accept lower scores but charge higher rates
If you’ve been declined for traditional consolidation, government debt management programs often provide superior relief anyway since they actually reduce what you owe.
How Does Debt Consolidation Affect Your Spouse?
Your debt consolidation generally doesn’t directly affect your spouse’s credit unless you have joint debts together. However, there are important considerations for Ontario couples.
Joint debts like co-signed loans or joint credit cards mean your spouse remains fully responsible even after your debt consolidation. Careful planning prevents putting unfair burden on your partner.
Strategies for couples include:
- Both spouses filing simultaneously if both have debt problems
- Planning household budget to handle remaining joint obligations
- Considering which spouse should handle joint debts moving forward
Your spouse’s credit report won’t show your bankruptcy or consumer proposal. However, lenders may consider household income for future credit applications.