Where to File a Consumer Proposal in Canada (2026 Guide)

If you’re drowning in debt and wondering where to actually file a consumer proposal in Canada, you’re not alone. Thousands of Canadians ask this exact question every year — and the answer is simpler than most people expect. You don’t go to a courthouse, a bank, or a government office. You file through a Licensed Insolvency Trustee (LIT), and the whole process can start within days.

A consumer proposal is one of the most effective ways to deal with overwhelming unsecured debt in Canada. It’s a legally binding agreement that lets you repay a portion of what you owe — often significantly less — while keeping your assets and stopping creditor harassment. Here’s everything you need to know about where to go and how to get started.

What Is a Consumer Proposal?

A consumer proposal is a formal, legally binding process governed by Division II of the Bankruptcy and Insolvency Act (BIA). It allows you to negotiate with your creditors to repay only a portion of your unsecured debt — typically between 20% and 50% of what you owe — over a period of up to five years, with no interest charged on the remaining balance.

Unlike informal debt settlements arranged through private companies, a consumer proposal carries the full weight of federal law. Once filed, it triggers an automatic stay of proceedings that immediately stops wage garnishments, collection calls, and lawsuits from your creditors. This legal protection is one of the biggest advantages over other debt relief options available to Canadians.

To qualify, you must owe between $1,000 and $250,000 in total unsecured debt (excluding your mortgage). If your debts exceed $250,000, you would need to file a Division I proposal instead, which has no debt ceiling.

Where to File a Consumer Proposal in Canada

This is the part that trips people up. You cannot file a consumer proposal at a bank, a credit union, a government office, or through a debt settlement company. The only way to file is through a Licensed Insolvency Trustee.

A Licensed Insolvency Trustee is a federally regulated professional licensed by the Office of the Superintendent of Bankruptcy (OSB). They are the only people in Canada authorized to administer consumer proposals and bankruptcies. The OSB maintains a public registry where you can search for a Licensed Insolvency Trustee by name or location anywhere in Canada.

There are Licensed Insolvency Trustees in every province and territory. Whether you’re in Toronto, Vancouver, Calgary, Halifax, or a smaller community, you can find a trustee near you — or work with one remotely. Many trustees now offer consultations by phone or video call, and the entire filing process can be handled electronically. No in-person visit is required.

Watch Out for Middlemen

Be cautious of debt settlement companies or “debt consultants” that charge upfront fees to “prepare your documents” or “refer you to a trustee.” You do not need a middleman. You can contact any Licensed Insolvency Trustee directly, and your first consultation is always free. Any fees your LIT charges are built into your proposal payments — there are no upfront costs to you. If you’re exploring whether a consumer proposal or another path is right for you, read our comparison of bankruptcy vs. consumer proposal.

Pros of Filing a Consumer Proposal

Cons of Filing a Consumer Proposal

Who Should Consider Filing a Consumer Proposal

Who Should NOT File a Consumer Proposal

Financial Example: What a Consumer Proposal Looks Like

Here’s a realistic example of how a consumer proposal might work for someone with $45,000 in unsecured debt:

Under a consumer proposal, your Licensed Insolvency Trustee might negotiate a repayment of $15,750 — roughly 35 cents on the dollar. That works out to about $263/month over 60 months, with no interest. The remaining $29,250 is legally forgiven.

Step-by-Step: How to File a Consumer Proposal

1. Book a free consultation with a Licensed Insolvency Trustee. Search the OSB’s public registry or contact a trustee directly. This first meeting is confidential and free of charge. You can meet in person, by phone, or by video.
2. Gather your financial documents. Bring a full list of your creditors and how much you owe each, your income details (pay stubs, tax returns), a summary of your monthly expenses, and a list of your assets. Your trustee will use this to complete the Statement of Affairs (Form 79).
3. Work with your trustee to draft the proposal. Together, you’ll determine a realistic repayment amount — one you can actually afford — and the length of the payment term (up to 60 months). The goal is an offer that your creditors will accept while being manageable for your budget.
4. Your trustee files the proposal with the OSB. The filing is done electronically. The moment it’s filed, a stay of proceedings kicks in — collection calls stop, wage garnishments are lifted, and lawsuits are paused. Your creditors are notified and given 45 days to vote.
5. Creditors vote on the proposal. If creditors holding more than 50% of your total debt (by dollar value) vote yes, the proposal is accepted and becomes binding on all unsecured creditors — even those who voted no. Most proposals are accepted without a creditor meeting being called. You can read real consumer proposal success stories to see how this plays out.
6. Make your monthly payments. Once accepted, you pay your fixed monthly amount to the trustee, who distributes it to your creditors. You must also attend two financial counselling sessions during the proposal.
7. Receive your Certificate of Full Performance. After all payments are made, you receive a certificate confirming you’ve fulfilled the proposal. You are legally released from all the debts included in it, and you can begin rebuilding your financial life.