Debt relief in Ontario
In short
All five routes out of consumer debt are open to residents in Ontario. Consumer proposals and bankruptcy are federal and work the same way in every province and territory. Debt settlement and consolidation lending are regulated provincially, so the licensed providers available to you are the ones registered in Ontario.
Updated
Debt rules in Ontario
- Limitation period for an unsecured debt claim
- 2 years — The Limitations Act, 2002 (S.O. 2002, c. 24, Sch. B, s. 4)Ontario e-Laws · 2026-09-04
- Providers licensed under
- Collection and Debt Settlement Services ActConsumer Protection Ontario · 2026-09-04
- Licence issued and confirmed by
- Consumer Protection Ontariowww.ontario.ca/page/guide-collection-agencies
Each figure links the statute or regulator page it was read from, with the date it was last checked. Nothing here is legal advice.
The five routes
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.
Cities we cover in Ontario
Who oversees this in Ontario
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.
Which routes apply here
Consumer proposals and bankruptcy are federal, so they work identically in Ontario as in any other province or territory. Debt settlement and consolidation lending are provincially regulated, so the licensed providers available to you are specific to your province.
Free help in Ontario
A Licensed Insolvency Trustee and a non-profit credit counsellor will both meet you at no cost before you commit to anything. Both directories below cover Ontario.
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
- How long can a creditor sue for a debt in Ontario?
- The Limitations Act, 2002 (S.O. 2002, c. 24, Sch. B, s. 4) sets a limitation period of 2 years for an ordinary unsecured debt claim. Once that period has run, the statute says a court proceeding on the claim can no longer be started. It does not follow that the balance disappears: collection contact can continue, and what the expiry means for the obligation itself varies between provinces. A lawyer can read the dates against your own file.
- Does a debt-settlement company need a licence in Ontario?
- Providers offering to arrange or negotiate a settlement with your creditors in Ontario are regulated under the Collection and Debt Settlement Services Act, and Consumer Protection Ontario is the body that issues and can confirm a licence. Ask any company for its licence number and the name of the issuing body, then check it with that body directly rather than taking the number at face value. A Licensed Insolvency Trustee is licensed separately, by the federal Office of the Superintendent of Bankruptcy.
- When does the clock start on an old debt in Ontario?
- From discovery. The statute runs the 2-year period from the day the claim is discovered — the day the creditor knew, or ought reasonably to have known, that it had a claim — rather than from the day you missed a payment. Those two dates are often close together on a consumer debt, but not always, and the difference decides whether a claim is still in time. Nothing about this is affected by which collection agency currently holds the file.
- Is a consumer proposal different in Ontario?
- 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 that a provider in Ontario is licensed?
- Ask for their licence number and the name of the body that issued it, then verify it with that body directly. A provider who will not give you this in writing is telling you something.
- Does this site cost anything in Ontario?
- No. You are never charged. We are paid by licensed settlement companies and consolidation lenders when we introduce you, and we are paid nothing for trustee and non-profit referrals.