Ontario Consumer Proposal Calculator

Ontario's consumer proposal is a debt settlement process that allows individuals to propose a repayment plan to their creditors. This calculator helps you determine your eligibility, calculate monthly payments, and understand the terms of your proposal.

How the Ontario Consumer Proposal Works

The Ontario consumer proposal is a legal process that allows you to propose a repayment plan to your creditors. It's an alternative to bankruptcy that can help you keep your assets while making arrangements to pay your debts over time.

Key Steps in the Process

Assess your financial situation
Prepare a proposal outlining your repayment plan
Submit your proposal to your creditors
Creditors vote on whether to accept your proposal
If accepted, you enter into a consumer proposal agreement

Once your proposal is accepted, you'll be required to make regular payments to a trustee who will distribute the funds to your creditors according to the terms of your agreement.

Eligibility Requirements

To be eligible for a consumer proposal in Ontario, you must meet certain criteria:

Eligibility Criteria

You must be a resident of Ontario
You must have unsecured debts of at least $5,000
Your total income must be less than the provincial median income
You must be able to pay at least 50% of your disposable income toward your proposal
You must not be in default on any of your debts

If you meet these requirements, you may be able to propose a repayment plan that works for your financial situation.

Understanding Your Repayment Plan

Your repayment plan will be based on several factors, including:

Factor	Description
Total Debt	The total amount of your unsecured debts
Income	Your total household income
Expenses	Your regular living expenses
Proposal Period	The length of time your proposal will cover (typically 3-5 years)

The trustee will calculate your monthly payment based on these factors and distribute the funds to your creditors according to the terms of your agreement.

Frequently Asked Questions

How long does a consumer proposal take?: A typical consumer proposal process takes about 4-6 months from start to finish, including the time for creditors to vote on your proposal.
Can I keep my assets during a consumer proposal?: Yes, one of the key benefits of a consumer proposal is that you can keep your assets while making arrangements to pay your debts.
What happens if my creditors reject my proposal?: If your creditors reject your proposal, you may need to consider other debt relief options, such as bankruptcy or negotiating with your creditors directly.
Can I modify my proposal after it's been accepted?: Yes, you can modify your proposal at any time by working with your trustee and creditors to agree on changes to your repayment plan.
Will a consumer proposal affect my credit score?: A consumer proposal will have a negative impact on your credit score, but it's generally less severe than bankruptcy and may help you rebuild your credit over time.