Breaking Free from Financial Burden

Think of a consumer proposal as bankruptcy's less dramatic cousin. With bankruptcy, you essentially say "I can't pay" and most debts get wiped (though you might surrender some assets). With a consumer proposal, you say "I can't pay everything, but here's what I CAN afford" - usually 20-50% of what you owe.

Proposals are often better because you keep your assets, it's less severe on your credit, and you're paying something back. But bankruptcy is faster and sometimes necessary if you literally have nothing. We'll help figure out which makes sense for your situation.

Usually, yeah! If you're making payments and the equity isn't crazy high, you can typically keep both. There's something called "exempt property" in Ontario - certain assets are protected even in bankruptcy.

For vehicles, there's an exemption for cars worth up to $7,117. Houses are trickier - depends on equity and whether you can keep making payments. With a consumer proposal, you almost always keep everything as long as you stick to the payment plan. This is something we go over in detail during consultation because everyone's situation is different.

First consultation is free - no catch, no hidden fees. After that, it depends on what route you take. Consumer proposal fees are built into your payments, so there's no separate bill to worry about.

Bankruptcy costs vary based on your income and assets, but typically start around $1,800-2,500 for simple cases. Sounds like a lot when you're already struggling, but these fees can usually be paid in installments. And honestly, when you're eliminating tens of thousands in debt, it's worth it.

In most cases, no. Your employer doesn't need to know unless they're also a creditor (like if you owe them money). Bankruptcy records are public, but let's be real - nobody's checking those unless they have a specific reason to.

If you have wage garnishment happening, yeah, they'll notice when that stops. But that's actually a good thing! Consumer proposals and bankruptcies stop garnishments immediately. Some professional fields (like accounting or law enforcement) have different rules, which we'll discuss if relevant.

Most unsecured debts - credit cards, personal loans, payday loans, medical bills, old cell phone bills - can be wiped out or reduced. That's the good news.

The exceptions? Student loans (if you've been out of school less than 7 years), child support, alimony, court fines, and secured debts like mortgages or car loans (unless you surrender the asset). Also can't eliminate debts from fraud, but that's pretty rare. We'll go through your specific debts and tell you exactly what can be dealt with.

Usually within 24-48 hours once you hire us and we file the paperwork. There's a legal "stay of proceedings" that kicks in immediately - basically tells all creditors to back off or face legal consequences.

It's one of the most immediate benefits people notice. The phone stops ringing, the threatening letters stop, and you can finally breathe. Even if you're not sure about bankruptcy or a proposal yet, just having a consultation letter from us often gets creditors to chill out.

Only if they co-signed or are jointly responsible for the debts. If the debt's in your name only, it's your problem alone - your spouse's credit stays clean.

That said, if you've got joint accounts or your spouse co-signed loans, yeah, they're on the hook too. Sometimes couples file together, sometimes separately. We look at household income for certain calculations, but filing doesn't automatically drag your spouse into it. It's actually one of the first things we clarify in consultations.