Debt relief options in Ontario
The right option depends on how much you owe, your income, and whether creditors are already taking action.
Consumer proposal
Settle your debt for less than you owe.
Bankruptcy
Clear most unsecured debt legally and get a fresh start.
Debt consolidation
Combine multiple debts into one payment at a lower interest rate.
Credit counselling
Get budgeting advice and a plan to repay debt with reduced interest.
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Get debt relief in Ontario
Ontario has some of the highest living costs in Canada. If you are only making minimum payments or borrowing to cover bills, your situation probably won’t get better without a change in approach.
Now for the good news. There are government-regulated debt relief programs that can reduce what you owe, freeze interest, and stop creditor calls.
A consumer proposal is a common option for those with steady incomes who want to avoid bankruptcy. For more severe cases, bankruptcy can offer a fresh start.
Both are administered under the Bankruptcy and Insolvency Act and can only be filed through a Licensed Insolvency Trustee. The initial consultation is free, confidential and comes with no obligation.
Licensed Insolvency Trustees regulated by the Office of the Superintendent of Bankruptcy
Meet your Ontario Licensed Insolvency Trustee
Robert Johnson is a Licensed Insolvency Trustee with Moses Advisory Group. He has over 20 years of experience helping Canadians manage debt through consumer proposals, bankruptcy and debt restructuring.
Robert is licensed by the Office of the Superintendent of Bankruptcy and is a member of CAIRP, the Canadian Association of Insolvency and Restructuring Professionals.
“Money worries are stressful. My job is to listen, explain your options and help you choose the path that protects your home, your income and your peace of mind.”
Robert Johnson
Licensed Insolvency Trustee
Example debt scenario
Before and after debt help
Here’s an example of how your payments could change.
Let’s say you owe…
CRA Debt
$13,020.92
Credit Card
$8,244.36
Bank Overdraft
$1,539.09
Utilities Arrears
$760.68
CashMoney Loan
$2,302.40
Student Debt
$3,923.50
Total amount
$29,790.95
How your monthly payments change with debt help
$750
$150
Payments depend on your financial situation.
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See how much debt you can erase today
See how much you could save.
What you can keep in an Ontario bankruptcy
Ontario has specific rules about which assets are protected if you file for bankruptcy. These are set out in the Ontario Execution Act.
| Asset | Exemption limit |
|---|---|
| Principal residence (equity) | $10,783 |
| Motor vehicle | $7,117 |
| Household goods and furniture | $14,180 |
| Tools of the trade | $14,405 |
| Clothing | No limit on necessary clothing |
| RRSPs, RRIFs, DPSPs | Protected (except contributions made in last 12 months) |
| Life insurance | Protected if beneficiary is a spouse, child, parent or grandchild |
If your equity in an asset exceeds the limit, you may need to pay the difference to keep it. A consumer proposal often lets you keep everything without surrendering assets.
Eliminate most types of debt
Most unsecured debts, such as credit cards, payday loans, personal loans, and overdue bills, can be included.
- Overdrafts
- Personal loans
- Credit cards
- Store cards
- Rent arrears
- Lines of credit
- Student loans
- Utility bills
- Collections
- Payday loans
- CRA debts
- Cell phone debt
…and many more types of debt.
Testimonials
Trusted by Canadians
Real reviews from real clients.
4.8 ★ on Google 170+ reviews
I had a wonderful experience, especially with Janelle. She was kind and supportive, and she made the entire process so much easier. I feel at ease, as if a huge weight has been lifted off my shoulders.
Soheila Adelian
Nikolas was very kind, helpful and respectful. He explained very clearly and answered all the questions politely. He is very professional, and you can feel his empathy, sincerity and willingness to help. Highly recommended.
Jaime Torres
The team has been excellent. Professional and knowledgeable guidance. Great help in explaining the process and providing the necessary support. Recommend to anyone having financial issues to take advantage of their expertise.
Oluwaseun Fanawopo
Excellent! I was heavily in debt and extremely stressed out, but after the first consultation, they made a very affordable proposal for me. Since that day, my financial situation has improved tremendously! I would highly recommend them to anyone suffering from heavy financial difficulties.
Kashaija Stephen
Thanks Neil for all your help. I appreciate all your help and understanding through what has been a difficult time. I would highly recommend them.
Candice Knight
Working with this group has been great, and they have helped me a lot. Highly recommend for those with financial problems. Great job, guys, and thank you so much for all your help.
May Niegos
I’m very glad that this company was able to give us a lifeline during our financial problems. I’m very grateful for all the support, especially to Niko, who has helped and guided me along the way. I appreciate your support and very kind, excellent service. Thank you all, and more power to your company!
Jun Abanilla
Excellent service. Professional advice. Anyone with financial questions or concerns will benefit from visiting their office. What a great experience. Thank you! Thank you!
Sharon
How it works
How debt relief works in Canada
Roselyn Doctolero, Insolvency Administrator Associate
4.8 ★ on Google 170+ reviews
Serving all of Ontario
Our Licensed Insolvency Trustees offer consultations by phone, video or in person across Ontario.
Toronto: Serving Toronto, Mississauga, Brampton, Vaughan and the GTA
Ottawa: Serving Ottawa, Gatineau, Kanata and Orleans
Hamilton: Serving Hamilton, Burlington, Oakville and Niagara
London: Serving London and Southwestern Ontario
Kitchener-Waterloo: Serving Kitchener, Waterloo, Cambridge and Guelph
Windsor: Serving Windsor and Essex County
FAQs
Questions answered
What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee is the only professional in Canada authorized to file consumer proposals and bankruptcies. LITs are licensed by the Office of the Superintendent of Bankruptcy and act as officers of the court.
How much debt can I eliminate in Ontario?
Through a consumer proposal, you can reduce your unsecured debt by up to 80%. The exact amount depends on your income, assets and what your creditors accept. Bankruptcy eliminates most unsecured debt entirely, though you have payments based on your income.
How much home equity can I keep in an Ontario bankruptcy?
Under Ontario’s Execution Act, you can keep up to $10,783 in equity in your principal residence. If your equity exceeds that amount, you pay the difference to keep your home, or a consumer proposal is a better option.
Can I keep my car if I file bankruptcy in Ontario?
Yes, if your vehicle is worth $7,117 or less. If it’s worth more, you can pay the difference to keep it. Leased and financed vehicles work differently. Your trustee will explain the specifics based on your situation.
Will a consumer proposal stop wage garnishment in Ontario?
Yes. The moment your consumer proposal is filed, a legal stay of proceedings takes effect. Wage garnishments stop, collection calls stop and any lawsuits against you are halted.
Can I include CRA tax debt in a consumer proposal?
Yes. CRA debt, including income tax, HST and payroll source deductions, can be included. CRA is treated the same as any other unsecured creditor and is bound by the proposal if the majority of creditors accept it.
What about student loans?
Student loans can be included in a consumer proposal or discharged in bankruptcy if you’ve been out of school for at least seven years. If you haven’t reached the seven-year mark, you can still file a proposal for your other debts. That often frees up enough cash flow to manage student loan payments separately.
How long does bankruptcy last in Ontario?
A first-time bankruptcy with no surplus income takes nine months. If your income exceeds a government-set threshold, the term extends to 21 months. A consumer proposal takes up to five years but lets you keep your assets and often results in lower total payments.
Is this service licensed by the government?
Yes. DebtReliefCanada.com is operated by Moses Advisory Group, a Licensed Insolvency Trustee firm regulated by the Office of the Superintendent of Bankruptcy. Only a Licensed Insolvency Trustee can file a consumer proposal or bankruptcy in Canada.
Talk to a Licensed Insolvency Trustee
Our Licensed Insolvency Trustees in Ontario can help you get out of debt.
- Reduce debt by up to 80%
- Stop collection calls
- Lift wage garnishments
- End all legal action
- Freeze interest + charges
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