Answers to Questions About Consumer Proposals

Debt is a serious strain on everyday life and can cause extreme worry and frustration for any individual and their family. If you have total debts that do not exceed $250,000 and you have assets to protect, then filing for a consumer proposal can be the right solution for you.

What’s the Process?

Only a Licensed Insolvency Trustee, formerly known as a bankruptcy trustee, can set up a consumer proposal for you. You’ll have to pay an initial setup fee and, if your proposal is accepted by your creditors, you proceed by paying the balance. From there, your trustee will keep a small portion of your future payments as part of an administration fee. No proposal is legally binding until the creditors who own most of your debt agree to the arrangement. Once they do, you have a maximum term of five years to repay the agreed upon amount.

What Are the Advantages?

If you are worried about your debt and hoping to discover how a consumer proposal can help you, then consider the benefits of one sooner rather than later. For one, a consumer proposal can make a significant reduction in the amount of debt you are required to pay your creditors. If you can’t afford to repay all of what you owe, have a stable income, and have enough money in your budget to make monthly payments, then this type of arrangement could suit your situation best.

What Are the Disadvantages?

If you’re reading along and thinking that this route might be the right one for you, then why not

call us to learn about consumer proposal to see if it really is the best way to go? There are plenty of reasons why filing a proposal with a Licensed Insolvency Trustee can help you, but you should also be aware of the disadvantages of this arrangement.

For example, you have to be approved by the Court to file for a consumer proposal and if you’re trying to get relief from student debt, you should know that student loans less than seven years old do participate in a consumer proposal, but they are not discharged and any balance not paid through the consumer proposal will still be collectible.

When Is It the Right Things to Do?

Maybe you’re trying to figure out which option is best for you: bankruptcy vs consumer proposal and you’re not quite sure of an answer. That’s why it’s important to consult a bankruptcy trustee to help you navigate your options. Still, there are some main classifiers that make a this an effective way of consolidating your debt:

  • You have a stable income
  • You can’t afford to repay all of what you owe
  • You can commit to making regular, monthly payments
  • You don’t qualify for a debt consolidation loan
  • Your debts are too high for a debt management program

Choosing a consumer proposal is one of the last ways to avoid bankruptcy and it can pause collection efforts from unsecured creditors, which means it may be just what you need to find some relief from difficult debt.

There are plenty of resources out there to help you learn about debt relief. If things are seeming grim and you are considering bankruptcy, don’t worry. Take the first step to meet with a bankruptcy trustee to evaluate your situation, discuss your options, and find the best solution to your financial problems.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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