Debt Relief Programs in Ontario: Consumer Proposals, Bankruptcy & More
JASON CAMPBELL
December 9, 2025
Understanding Debt Relief Programs in Ontario, Canada
Introduction
Dealing with debt can feel overwhelming, but you’re not alone. In Ontario, several debt relief programs can help you regain control of your finances and work toward a fresh start. Whether you’re struggling with credit card debt, personal loans, or other financial obligations, understanding your options is the first step toward financial freedom.
In this guide, we’ll explore four key debt relief solutions available in Ontario:
Consumer Proposals
Bankruptcy
Debt Management Programs
Bank Consolidation Loans
Our office specializes in consumer proposals and bankruptcy services, ensuring you receive professional guidance tailored to your unique financial situation.
1. Consumer Proposals
A consumer proposal is a formal, legally binding process administered by a Licensed Insolvency Trustee (LIT). It allows you to negotiate with your creditors to repay a portion of your debt over a period of up to five years.
Who Qualifies?
Total debts under $250,000 (excluding your mortgage on your primary residence)
Steady income to support repayment
Benefits of Consumer Proposals
Debt Reduction: Negotiate to pay less than what you owe.
Interest-Free Payments: No interest accrues during repayment.
Asset Protection: Unlike bankruptcy, you keep your home, car, and other assets.
Our office can assist you in preparing and filing a consumer proposal, ensuring your offer is fair and acceptable to creditors.
2. Bankruptcy
Bankruptcy is a legal process designed for individuals who cannot repay their debts. It involves liquidating non-exempt assets to repay creditors and provides a fresh start for those in severe financial distress.
Benefits of Bankruptcy
Debt Discharge: Most unsecured debts are eliminated.
Protection from Creditors: Stops collection calls, wage garnishments, and lawsuits.
Financial Counselling: Mandatory sessions help you rebuild financial habits.
Bankruptcy should be considered a last resort, but it can be the right solution for those facing overwhelming debt. Our office guides you through the process and ensures you understand your rights and obligations.
3. Debt Management Programs (DMPs)
A Debt Management Program is offered by credit counselling agencies to help you repay debts through a structured plan. It’s ideal for individuals with unsecured debts who need help managing payments.
Benefits of DMPs
Single Monthly Payment: Consolidate debts into one payment.
Reduced Interest Rates: Credit counsellors negotiate lower rates.
Financial Education: Learn budgeting and money management skills.
While we don’t directly offer DMPs, we can refer you to reputable agencies that do.
4. Bank Consolidation Loans
A bank consolidation loan involves taking out a new loan to pay off multiple existing debts. This option works best for individuals with good credit who qualify for a lower interest rate.
Benefits of Consolidation Loans
Simplified Payments: One loan, one monthly payment.
Lower Interest Rates: Reduce overall interest costs.
Credit Score Improvement: Consistent payments can boost your score.
Before choosing this option, review the terms carefully to ensure it’s the right fit for your financial situation.
Choosing the Right Option
Each debt relief solution has pros and cons. Factors like income, assets, credit score, and total debt will influence the best choice for you. Speaking with a Licensed Insolvency Trustee can help you make an informed decision.
Conclusion
Debt doesn’t have to define your future. Whether through a consumer proposal, bankruptcy, debt management program, or consolidation loan, there are solutions available to help you regain control. Our office specializes in consumer proposals and bankruptcy services, providing expert guidance every step of the way.
Take the first step today—reach out for a confidential consultation and start your journey toward financial freedom.