Frequently asked questions about bankruptcy & debt
Safe, secure & confidential
Safe, secure & confidential
FAQs
What are some warning signs that I might have a debt problem?
If your monthly debt payments (not counting rent or a mortgage) are greater than 20% of your income, you are headed toward a difficult financial situation. Other warning signs include difficulty paying monthly bills, trouble keeping track of money, and uncontrolled spending.
What is the difference between personal bankruptcy and a consumer proposal?
A consumer proposal lets you repay part of your unsecured debt over up to five years, and you usually keep your assets. Bankruptcy releases most unsecured debts, but non-exempt assets may be sold and it has a bigger impact on your credit. Both are legal processes under the Bankruptcy and Insolvency Act, administered by a Licensed Insolvency Trustee.
A consumer proposal is available if your total debts, not counting the mortgage on your principal residence, are $250,000 or less ($500,000 for a joint proposal). Above that, a Division I proposal may be an alternative to bankruptcy. A Licensed Insolvency Trustee will review which option fits your income, assets and goals.
Am I eligible to file a consumer proposal?
To be eligible to file a consumer proposal, your debts must total less than $250,000. You must have a stable income source, have no open prior proposal proceedings, and be unable to pay your debts when they are due. Businesses cannot file consumer proposals.
What are the steps to filing a consumer proposal?
First, you need a Licensed Insolvency Trustee to review your financial situation. Your trustee will work with you to determine how large a monthly payment you can fit into your budget. Then, he or she will make an official offer to your creditors. If it is accepted, you make monthly payments for a predetermined amount of time.
How do I rebuild my credit after bankruptcy or filing a consumer proposal?
The best thing you can do to rebuild your credit is to pay your bills on time. Avoid any habits that could get you back into debt, like charging purchases you can’t pay back. When you set up your budget, make sure to put aside extra money each month in case of emergency. You can also get a secured credit card with a low limit, which, if you make your payments on time, can start to rebuild your credit score.
Browse debt options in Canada
Why choose us for consumer proposals in Ontario?
Our Licensed Insolvency Trustees can provide a customised consumer proposal that could shrink your debt by up to 80%.
Our multilingual team offers debt support in Farsi, Portuguese, Italian, Tamil, and more, so you can feel comfortable every step of the way.
With offices in nine provinces, we offer in-person debt support across Canada—from Atlantic provinces to Ontario to British Columbia.
Get in touch with Harris & Partners
Our Licensed Insolvency Trustees offer free, confidential consultations from offices across Canada. Find your nearest office or call 800-268-8093 to book.
Find your nearest officeIt's never too late to obtain debt help. Book your free consultation today
- Phone number
- 800-268-8093
- hello@harrispartners.ca
