Consumer Proposal Ontario Calculator

What is a Consumer Proposal?

A Consumer Proposal is a debt settlement process available in Ontario through the Office of the Superintendent of Bankruptcy (OSB). It allows you to propose a repayment plan to your creditors, who then vote on whether to accept it. If approved, you make monthly payments to a trustee who distributes the funds to your creditors.

The process involves several steps including:

1. Completing a Consumer Proposal application
2. Providing financial information to your creditors
3. Submitting your proposal to the OSB
4. Creditors voting on your proposal
5. If approved, making monthly payments to the trustee

How a Consumer Proposal Works

The Consumer Proposal process begins with you completing an application with the OSB. You'll need to provide detailed financial information about your income, expenses, assets, and debts. This information is shared with your creditors, who then vote on whether to accept your proposal.

Eligibility Requirements

To be eligible for a Consumer Proposal, you must:

• Be a resident of Ontario
• Have a regular income
• Have debts that are unsecured (not backed by collateral)
• Have total debts between $1,000 and $250,000
• Not be in default on any of your debts

Repayment Plan

Your repayment plan will be based on your financial situation and the amount of your total debts. The OSB will calculate your maximum monthly payment based on your income and expenses. You'll need to propose a payment amount that you can afford and that your creditors will accept.

The repayment period typically ranges from 3 to 5 years, depending on the amount of your debts and your proposed payment amount.

Using the Calculator

Our Consumer Proposal Ontario Calculator helps you estimate your eligibility and determine your monthly payment. Simply enter your total debts, monthly income, and essential expenses to get an estimate of your maximum monthly payment.

Example Calculation

Let's say you have $50,000 in debts, a monthly income of $3,000, and essential expenses of $1,500. Using the formula:

This means you could propose a monthly payment of $15, which would be paid over a period of about 5 years to settle your $50,000 in debts.

Eligibility Requirements

To qualify for a Consumer Proposal in Ontario, you must meet several criteria:

Income Requirements

You must have a regular income that allows you to make the proposed monthly payment. The OSB will assess your ability to repay based on your income and expenses.

Debt Requirements

Your total unsecured debts must be between $1,000 and $250,000. The debts must be unsecured, meaning they are not backed by collateral such as a car or home.

Asset Requirements

You must be able to provide information about your assets, including your home, vehicle, and other property. The OSB will consider your assets when determining your eligibility.

Credit History

You must not be in default on any of your debts. If you are in default, you may not be eligible for a Consumer Proposal.

Repayment Plan Options

When you propose a Consumer Proposal, you'll need to determine a repayment plan that you can afford and that your creditors will accept. The OSB will provide guidance on creating a repayment plan, but ultimately, you have the flexibility to propose your own plan.

Flexible Repayment Terms

One of the advantages of a Consumer Proposal is the flexibility it offers in terms of repayment. You can propose a repayment period of 3 to 5 years, depending on the amount of your debts and your proposed payment amount.

Interest-Free Repayment

Unlike bankruptcy, a Consumer Proposal does not require you to pay interest on your debts. Instead, you make monthly payments to a trustee who distributes the funds to your creditors.

Tax Benefits

In some cases, you may be eligible for tax benefits under a Consumer Proposal. The OSB can provide more information about potential tax benefits based on your individual circumstances.