Insolvency referrals
Insolvency & Consumer Proposal Referrals
Referral support for Ontario borrowers who may need consumer proposal or insolvency advice while facing mortgage default, power of sale, creditor pressure, or debt overload.
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Tell us what deadline is coming up.
First question
Is the property problem tied to wider debt?
Mortgage arrears may be only one part of a larger creditor, tax, credit card, or business debt problem.
Second question
What debt is secured by the property?
Mortgages, liens, taxes, and secured claims must be separated from unsecured debt.
Third question
Who should be involved?
Some files need legal review and a referral to a licensed insolvency trustee or debt professional.
When mortgage pressure is part of a larger debt problem
Insolvency advice may help, but it should be coordinated with the property deadline.
A consumer proposal, bankruptcy advice, or debt restructuring discussion can be useful for some borrowers, but it must be considered alongside power of sale risk, equity, secured creditors, and timing.
Mortgage and creditor pressure review
Secured and unsecured debt sorting
Consumer proposal referral coordination
Power of sale deadline planning
Common situations
A proposal or insolvency referral can help only if it fits the property risk.
Debt overload
Mortgage arrears are not the only problem.
Credit cards, taxes, loans, judgments, and business debts may be adding pressure.
Property equity
The home or property may still have value to protect.
Equity, secured debt, exemptions, and creditor claims should be understood before choosing a path.
Timing
A lender deadline is coming while debt advice is being considered.
Mortgage enforcement deadlines should not be ignored while exploring proposal options.
Mortgage pressure often appears alongside a larger debt problem. A borrower may be behind on a mortgage, credit cards, tax debt, personal loans, business debt, or judgment payments. It can be tempting to look for one solution that fixes everything, but secured property debts and unsecured debts may be treated differently.
Insolvency and consumer proposal advice can be helpful for some borrowers. Consumer proposals are handled by licensed insolvency trustees. A legal review can help identify when a referral makes sense and how that advice should be coordinated with a mortgage enforcement deadline.
Secured and unsecured debt
A mortgage lender is usually a secured creditor. It may have rights against the property. Credit cards, unsecured loans, and some other debts may be unsecured. Tax debts, liens, judgments, and writs can complicate the picture.
Before choosing a path, the borrower should understand which debts are secured, which are unsecured, what appears on title, whether there is equity, and what deadline is coming from the mortgage lender.
Property risk
A consumer proposal or insolvency discussion should not distract from a notice of sale, court date, sale closing, or sheriff step. If the lender is enforcing against the property, that deadline needs immediate attention. The borrower may still need to negotiate with the lender, refinance, sell, or respond to court materials.
If there is equity in the property, the decision becomes even more important. A rushed or poorly coordinated decision may put that equity at risk.
Coordinated help
Some files benefit from both legal and insolvency input. A lawyer can review mortgage enforcement, title, lender conduct, and urgent deadlines. A licensed insolvency trustee can advise on consumer proposals, bankruptcy, and treatment of unsecured debts. The goal is to make sure one step does not accidentally harm another.
First review
Gather the mortgage notice, payout, arrears, property value, title records, creditor list, tax debts, collection letters, income, expenses, and any trustee correspondence. Once the debt picture and property deadline are clear, the right referral or next step can be chosen with less guesswork.
What happens first
Start by separating the property deadline from the wider debt picture.
01
Sort the debts
Identify secured creditors, unsecured creditors, tax claims, judgments, and guarantees.
02
Check property risk
Review equity, arrears, payout, notice deadlines, and whether the lender is already enforcing.
03
Coordinate referral
Where appropriate, connect the borrower with insolvency advice while protecting the property timeline.
Ways forward
The right referral depends on debt type, equity, income, and lender timing.
Consumer proposal referral
A licensed insolvency trustee can advise whether a proposal may address unsecured debts.
Debt negotiation
Some files may be resolved through direct settlement or payment arrangements.
Mortgage plan
Secured mortgage arrears may still require payment, refinance, sale, or lender negotiation.
Sale planning
If the property has equity, a controlled sale may be part of the debt solution.
Tax or judgment review
Tax debts, writs, and judgments can affect title and should be identified early.
Emergency response
If power of sale or eviction is imminent, urgent property advice may come first.
Insolvency referral questions
Short answers when debt and property pressure overlap.
Do you file consumer proposals? + -
Consumer proposals are handled by licensed insolvency trustees. Legal review can help identify when a referral may be appropriate alongside property enforcement concerns.
Will a proposal stop power of sale? + -
Not automatically in every situation. Secured mortgage rights and property deadlines need separate review.
Should I speak to a trustee? + -
If unsecured debts, tax debts, judgments, or collection pressure are overwhelming, a trustee referral may be useful.
What should I gather? + -
Gather mortgage documents, notices, payout, list of creditors, income, expenses, asset values, and any collection or court papers.