Consumer Proposal Calculator Ontario

What is a Consumer Proposal?

A Consumer Proposal is a debt settlement process available in Ontario under the Consumer Proposal Act. It provides a structured way to pay back a portion of your unsecured debts over a period of 1 to 5 years, while the remaining balance is written off.

Key features of a Consumer Proposal include:

• You propose a payment plan to your creditors
• Creditors must accept or reject your proposal
• If accepted, you make monthly payments to a trustee
• The trustee distributes payments to creditors
• After the proposal period, any remaining debt is discharged

How a Consumer Proposal Works

The Proposal Process

1. Consultation: Meet with a licensed insolvency trustee to discuss your financial situation.
2. Proposal Preparation: The trustee helps you prepare a proposal outlining your debts and proposed payment plan.
3. Proposal Submission: You submit the proposal to your creditors through the trustee.
4. Creditor Review: Creditors have 21 days to accept or reject your proposal.
5. Proposal Approval: If accepted, you enter into a formal agreement with the trustee.
6. Monthly Payments: You make monthly payments to the trustee, who distributes them to creditors.
7. Debt Discharge: After the proposal period, any remaining debt is written off.

Eligibility Requirements

To be eligible for a Consumer Proposal, you must:

• Be at least 18 years old
• Have unsecured debts of $1,000 or more
• Have a regular income
• Be able to pay at least 50% of your proposed monthly payment
• Not have any outstanding tax debts

Proposal Period

The proposal period can range from 1 to 5 years, depending on your financial situation and the amount of debt you're proposing to settle. Shorter periods typically require larger monthly payments.

Using the Calculator

Our Consumer Proposal Calculator helps you estimate your monthly payments and understand the financial impact of a Consumer Proposal. Simply enter your total eligible debt and select a proposal period, then click "Calculate" to see your estimated monthly payment.

Input Fields

• Total Eligible Debt: Enter the total amount of your unsecured debts that are eligible for a Consumer Proposal.
• Proposal Period: Select the length of your proposal period (1-5 years).

Calculation Results

The calculator will display:

• Your estimated monthly payment
• The total amount you'll pay over the proposal period
• The amount of debt that will be written off

Chart Visualization

The calculator includes a chart showing the breakdown of your payments and the amount of debt settled over time.

Example Calculation

Let's look at an example to see how the Consumer Proposal Calculator works.

Scenario

• Total eligible debt: $15,000
• Proposal period: 3 years

Calculation

The calculator would calculate:

• Monthly payment: $15,000 / (36 months) = $416.67
• Total payments: $416.67 × 36 = $15,000
• Debt written off: $0 (since you're paying the full amount)

Result Interpretation

In this example, you would pay $416.67 per month for 3 years, settling your $15,000 debt in full. There would be no debt written off because you're paying the full amount.