Consumer Proposal Experts in North York
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At EmpireOne Credit, our certified credit counsellors will review your financial situation and work with you to resolve your credit issues.

If you owe less than $250,000, other than the mortgage and charges against the principal residence, there exists an affordable monthly payment plan, which is completely interest free. The proposal immediately stops all collection proceedings and legal action by your creditors, including lawsuits, asset repossession and wage garnishment. This will improve your household budget.

A consumer proposal addresses unsecured debt that can take on five aspects.
  • Credit card balances
  • Personal lines of credit
  • Bank loans and bank overdrafts
  • Personal loans advanced by finance companies, payday lenders and friends/relatives
  • Income tax debt owed to Canada Revenue Agency

A joint proposal may be filed by two or more individuals if the consumer proposal can reasonably be dealt with as one because of the financial relationship of the debtors involved (i.e. a married couple, common law partner or unrelated people with a large amount of shared debt). In practice, a joint proposal is often filed when there is 70% shared debt and when the individuals have both co-signed for the same loan or credit card. You may wish to consult with EmpireOne on the subject of joint liabilities.

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A consumer proposal has the force of law behind it.
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If at least half of the creditors by dollar amount vote to accept the offer, all remaining unsecured creditors are bound by this offer and cannot take any action against the debtor.

A typical consumer proposal runs for 3,4 or 5 years. If the debtor is in a 5 year term, they are to pay monthly installments to pay off the reduced debt amount , once and for all. Debtors have the flexibility to expedite the process of debt clearance if that’s a feasible option for them. The sooner you are able to honour the terms, the faster you will regain your credit rating, and obtain the financial freedom you deserve. This debt-settlement arrangement is only for unsecured debt. For any questions regarding filing a consumer proposal in North York or anywhere in Ontario, call EmpireOne Credit to assist you.

Secured assets are excluded in a consumer proposal

Many debtors are often left confused if their personal assets like a car or home will be repossessed after filing a consumer proposal in North York. We would like to inform you that a secured debt does not come under the purview of a consumer proposal.

If you have a business, you can continue to run it when filing a consumer proposal. If you decide to quit your business and you want to end all business activities at the time of filing the proposal, you can include all reasonable debt that incurred in your sole proprietorship.

For those worrying if the reference to the proposal will show in personal credit history, your concerns can rest as such records are expunged after 3 years of obtaining a Certificate of Full Performance.

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Think before Declaring Bankruptcy to Resolve Debt Issues

Mounting debt pressure often pushes debtors to file bankruptcy without considering the long-term consequences. We, at EmpireOne Credit, educate our clients about the possible debt relief solutions that do not include declaring bankruptcy. We work with our clients to obtain an affordable debt solution to reduce and eliminate financial stress and worries. Allow our expert counsellors at EmpireOne to guide you through the process with professional advice and suggestions, for you to make the right choices in obtaining financial freedom.

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About us

EmpireOne Credit is dedicated to helping clients in the Greater Toronto Area who are struggling with debt and financial hardship. EmpireOne Credit’s passion is derived from the knowledge that the situation isn’t always as bad as it seems. Through credit counselling, EmpireOne guides their clients toward the best options possible, whether that is a debt consolidation, a consumer proposal or declaring bankruptcy.

Regardless of the path taken, EmpireOne Credit is proud to help clients every step of the way.

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(416) 900-2324
FAQ
Browse through these FAQs to find answers to commonly raised questions
about Consumer Proposal.

A consumer proposal is a formal, legally binding process between you and your creditors to offer a payment percentage of what you owe based on income and assets.

You won’t be able to apply for an unsecured credit card while you’re making payments in your proposal, but you will be able to apply for a secured credit card or a prepaid one.

3 years after the last day of payment on the fulfillment of the Consumer Proposal. As stated by Equifax, “A consumer proposal will be removed from your Equifax credit report 3 years after you’ve paid off all the debts according to the proposal, or 6 years from the date it was filed, whichever comes first.”

If you miss a proposal payment you can always make it up within the term, but if 3 payments are missed within the term then you become annulled. If you’re annulled, you have a month from the first day of annulment to revive your proposal by making up the payments missed all at once.

  • All unsecured credit cards,
  • CRA debt,
  • lines of credit,
  • student loans,
  • cash stores loans,
  • department store cards,
  • phone bills,
  • utility bills,
  • shortfall owing on assets that have been repossessed (example; vehicle, house)