If you have debts that you're unable to pay, your creditors may place a lien on your property as a way to secure their debt. This can be a stressful and difficult situation to deal with, but there are options available to help protect yourself.

Consumer proposals and personal bankruptcies are two legal processes that can help protect you from liens in Ontario. They can help stop collection actions and allow you to keep your assets while you work to repay your debts.

In a consumer proposal, you make a settlement offer to your creditors to repay a portion of your debt over a period of time. If your creditors agree to the proposal, you'll be protected from any further collection actions, including liens. You'll be required to make payments to a Licensed Insolvency Trustee who will then distribute the funds to your creditors.

Similarly, filing for personal bankruptcy protection will also protect you from liens. This will be discussed in detail with your Licensed Insolvency Trustee (LIT) at your initial consultation.

It's important to note that not all liens can be discharged through a consumer proposal or personal bankruptcy. Liens that are filed by the Canada Revenue Agency (CRA) for unpaid taxes are typically not affected by a consumer proposal or personal bankruptcy. This means that if you have a CRA lien on your property, you may still be required to pay it even after filing for bankruptcy or a consumer proposal.

If you're dealing with liens on your property and struggling with debt, it's important to speak with a licensed insolvency trustee who can help you understand your options. A trustee can help you determine whether a consumer proposal or personal bankruptcy is the right choice for you and can guide you through the process to help protect your assets and get you back on track financially.

In summary, a consumer proposal and personal bankruptcy are legal options available to protect you from liens in Canada. While not all liens can be discharged through these processes, they can still provide relief from collection actions and help you regain control of your financial situation. If you're dealing with liens and struggling with debt, speak with a licensed insolvency trustee to learn more about your options.