Debt relief in Toronto
In short
All five routes out of consumer debt are available to residents of Toronto. Consumer proposals and bankruptcy are federal and work identically everywhere. Debt settlement and consolidation lending are regulated by Ontario, so the licensed providers you can use are the ones registered there.
Updated
Which routes apply in Toronto?
Consumer proposal
A formal offer to your creditors, filed by a Licensed Insolvency Trustee.
Debt settlement
A licensed company negotiates with creditors on your behalf, for a fee.
Debt consolidation loan
One new loan pays out several balances, leaving a single payment.
Non-profit credit counselling
A counsellor reviews your budget and may set up a debt management plan.
Handle it yourself
For smaller balances, a plan and a payoff order often beats paying anyone.
Other cities in Ontario
About Toronto
Canada's largest city and the centre of its financial sector, with the highest cost of living of any major Canadian market.
Toronto had about 2,794,356 residents at the 2021 Census.
Housing costs absorb a large share of household income here, so unsecured balances often build alongside a mortgage or a high rent rather than instead of one.
Who regulates providers serving Toronto?
Ontario regulates debt settlement services under the Collection and Debt Settlement Services Act. Providers must be registered, fees are capped, charging before a settlement is reached is prohibited, and consumers have a ten-day cooling-off period.
Where is the nearest insolvency office?
The Office of the Superintendent of Bankruptcy division office serving Toronto is in Toronto. You do not need to visit one — Licensed Insolvency Trustees are found through the federal directory and routinely hold first consultations by phone or video.
Free resources
Find a Licensed Insolvency Trustee
The federal directory of Licensed Insolvency Trustees. Free, and the only route to a consumer proposal.
Find a non-profit credit counsellor
Non-profit member agencies. The first appointment is usually free.
Free budgeting tools
The federal budget planner. Costs nothing and needs no account.
Frequently asked questions
- Is a consumer proposal different in Toronto?
- No. Consumer proposals are governed by the federal Bankruptcy and Insolvency Act, so the mechanism is the same in every province and territory. What differs is which Licensed Insolvency Trustees practise near you.
- How do I check a provider serving Toronto is licensed?
- Ask for the licence number and the name of the body that issued it, then verify it directly with that body. Ontario regulates debt settlement services under the Collection and Debt Settlement Services Act. Providers must be registered, fees are capped, charging before a settlement is reached is prohibited, and consumers have a ten-day cooling-off period.
- Does this site cost anything in Toronto?
- No. You are never charged. Licensed settlement companies and consolidation lenders pay us when we introduce you, and we are paid nothing for trustee and non-profit referrals.