Licensed Insolvency Trustee

How much does a consumer proposal cost in Ontario?

Clear answers. No surprises. Just honest, professional guidance from Licensed Insolvency Trustees.

Everything you need to know about the cost of a consumer proposal

At Doyle Salewski, we know that financial stress is overwhelming—and the fear of not knowing what a consumer proposal will actually cost keeps many people stuck. This page is here to clear that up.

Whether you’re just starting to explore your options or actively looking for a way out of debt, understanding the true cost of a consumer proposal in Ontario is a critical step. It’s not just about numbers—it’s about knowing what to expect, protecting what matters most, and deciding what’s right for your future.

Our team of federally licensed trustees has helped thousands of Ontarians navigate bankruptcy and consumer proposals with confidence, clarity, and dignity. We’ll break everything down in plain language so you can make an informed decision.

You deserve answers. Let’s start with the facts.

What Is a Consumer Proposal?

A consumer proposal is a legally binding agreement between you and your creditors to repay a portion of your unsecured debt, with no interest, over a period of up to five years. It’s administered by a Licensed Insolvency Trustee and gives you full legal protection from creditors—just like bankruptcy.

The key difference is that in a consumer proposal, you keep your assets, and your monthly payment is based on a fair settlement that both you and your creditors agree to.

How Much Does a Consumer Proposal Cost?

Unlike bankruptcy, there’s no fixed base cost for a consumer proposal. The cost depends on:

How much you owe
What your creditors are willing to accept
What you can reasonably afford to pay each month

Your Licensed Insolvency Trustee will propose a monthly payment based on your situation—often between 30% and 70% of your total debt, spread over a term of 60 months.

Example: You owe $40,000 in unsecured debt. You may offer to repay $18,000 over 60 months = $300/month, interest-free.

A one-time OSB filing fee of $115 is required at the start of your proposal. The trustee’s fees are regulated and included in your monthly payments. You will not be required to pay anything beyond the amount agreed upon in the proposal.

Why Do Proposal Costs Vary?

Consumer proposals are personalized to your financial reality. Your monthly payment and total cost can vary based on:

Income – Higher income may result in higher offers to creditors
Family size – Affects disposable income calculations
Assets – Creditors may expect a higher offer if you’re protecting valuable assets
Debt level – Total amount of debt affects the size of the proposal
Employment stability – Consistent income can support longer or higher payments

Two people with the same amount of debt can end up with very different proposal terms based on these factors.

What Types of Debt Are Included?

Consumer proposals can include most unsecured debts, such as:

Credit cards
Personal loans
Payday loans
Lines of credit
Income tax debt
Student loans (if it’s been more than 7 years since you were a student)

Secured debts like car loans or mortgages are not included—but you can continue paying those separately if you want to keep the asset.

Is a Consumer Proposal Cheaper Than Bankruptcy?

Sometimes. Here’s when it might be:

You have surplus income and want to avoid paying 50% of it each month
You own assets you want to keep (house, car, investments)
You want more control over your monthly payment
You prefer a stable, predictable repayment amount

But if your income is very low and you don’t own significant assets, bankruptcy may result in a lower total repayment.

That’s why your Licensed Insolvency Trustee will walk you through both options and help you compare the numbers side by side—before you commit to anything.

Comparing the Cost: Bankruptcy vs. Consumer Proposal vs. Other Options

If you’re wondering which debt solution makes the most financial sense, this table will help you compare:

Feature	Bankruptcy	Consumer Proposal	Debt Consolidation Loan	Minimum Payments
Monthly Payment	Varies based on income	Negotiated fixed amount	Based on loan terms	High and interest-heavy
Total Repaid	Often less than full debt	Portion of debt (e.g. 30–70%)	100% of debt + interest	100% of debt + interest
Term Length	9–21 months (or longer)	Up to 60 months	Varies (usually 2–5 years)	Ongoing
Assets Affected	Some may be surrendered	Typically protected	Protected	Protected
Interest Charges	None	None	Yes (varies)	Yes
Credit Impact	R9 rating	R7 rating	Depends on history	Negative if behind
Legal Protection	Yes	Yes	No	No

No single solution fits everyone. What matters is finding the right balance between monthly affordability, asset protection, and total cost over time.

What Affects the Final Cost of Bankruptcy or a Proposal?

Several factors will shape your monthly payments and overall costs:

Income Level – Affects surplus income in bankruptcy or your proposal offer
Family Size – Federal thresholds are based on household size
Total Debt – Proposals are negotiated as a percentage of what you owe
Assets – If you have assets you want to keep, proposals help protect them
Employment Stability – Regular income supports a steady proposal plan
Prior Bankruptcies – A second bankruptcy lasts longer and costs more

When you speak to a trustee, they’ll take all of this into account to build a plan that fits your real-life budget and obligations.

Frequently Asked Questions About The Cost Of Consumer Proposals

Do I need to pay anything upfront to file bankruptcy or a proposal?

No. Most people begin either process with no upfront payment. Your Licensed Insolvency Trustee will arrange monthly payments that fit your financial situation.

What happens to my credit score?

Bankruptcy results in an R9 rating and remains on your credit report for 6 years after discharge (or longer if it’s not your first time). A consumer proposal is an R7 and stays for 3 years after completion.

Will I lose my house?

That depends on the equity you have. In many cases, especially with vehicles, you can keep them if you can afford to make buyback payments or if they fall under provincial exemptions.

Can I keep my car or house in a bankruptcy?

That depends on the equity you have. In many cases, especially with vehicles, you can keep them if you can afford to make buyback payments or if they fall under provincial exemptions.

Which debts are included?

Unsecured debts like credit cards, payday loans, tax debt, and personal loans are included. Secured debts (mortgages, car loans) are not.

How do I know which option is better for me?

The best option depends on your income, assets, and goals. That’s why we offer a free consultation—so you can make an informed decision with full clarity on costs.

Can I switch from bankruptcy to a proposal?

In some cases, yes. If your financial situation changes early in the bankruptcy, you may be able to file a consumer proposal instead.

Next Step?

Financial stress doesn’t need to be a life sentence—and you don’t need to figure it out alone. Whether bankruptcy or a proposal is right for you, we’re here to walk you through it step by step.

Book a free, confidential consultation with a Licensed Insolvency Trustee at Doyle Salewski. You’ll get answers tailored to your situation—and leave with a plan you can live with.