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Estimated Proposal
* These calculators provide estimates only. Actual results depend on your individual circumstances. Consumer proposal terms are set by a Licensed Insolvency Trustee based on your income and assets. Consult a professional for personalized advice.
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Get a personalized debt relief plan — consumer proposal, bankruptcy, or alternative — based on your unique circumstances.
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Filing immediately stops wage garnishment, collection calls, and creditor harassment through a legal stay of proceedings.
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Complete your plan and start rebuilding your credit with a clean financial slate.
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Success Stories
Real Canadians who found debt relief with our help.
"I was drowning in $35,000 of credit card debt. DebtSimplify connected me with a trustee who helped me file a consumer proposal. I'm paying back less than 25% of what I owed and finally have peace of mind."
Sarah M.
Toronto, ON
"The wage garnishment was taking 20% of my paycheck. After filing a consumer proposal, the garnishment stopped immediately. I wish I'd done this years ago."
James T.
Calgary, AB
"I was scared of bankruptcy, but the resources here helped me understand all my options. The consultation was free and completely judgment-free. Highly recommend."
Maria L.
Vancouver, BC
Frequently Asked Questions
Answers to common questions about debt relief in Canada.
What is a consumer proposal in Canada?
A consumer proposal is a legally binding agreement between you and your creditors, administered by a Licensed Insolvency Trustee. It allows you to repay a portion of your unsecured debt (often 20-30% of what you owe) over up to 5 years, with no interest. You keep your assets, and it stops all collection actions including wage garnishment.
How much debt can a consumer proposal reduce?
Consumer proposals typically reduce total unsecured debt by 70-80%, meaning you may pay back only 20-30 cents on the dollar. The exact amount depends on your income, assets, and what your creditors will accept. Most proposals are for amounts significantly less than the total debt owed.
Will a consumer proposal or bankruptcy ruin my credit forever?
No. A consumer proposal stays on your credit report for 3 years after completion (or 6 years from filing, whichever comes first). Bankruptcy stays for 6-7 years for a first-time filing. You can start rebuilding credit immediately after filing, and many people achieve good credit scores within 2-3 years of completing their proposal.
What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee (LIT) is a federally regulated professional licensed by the Office of the Superintendent of Bankruptcy to administer consumer proposals and personal bankruptcies in Canada. Only LITs can file these proceedings. They provide free initial consultations and are required to explain all your debt relief options.
Can I keep my house and car if I file for debt relief?
Yes, in most cases. With a consumer proposal, you keep all your assets including your house and car. With bankruptcy, provincial exemption laws protect certain assets, and you can often keep your vehicle and home if you continue making payments. A LIT will explain exactly what you can keep based on your province.
How do I stop wage garnishment in Canada?
Filing a consumer proposal or bankruptcy immediately stops wage garnishment through a legal 'stay of proceedings.' This includes garnishments from credit card companies, payday lenders, and most creditors. CRA garnishments are also stopped. Contact a Licensed Insolvency Trustee for a free consultation to discuss your options.