Answers to Questions About Consumer Proposals

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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, call us at 1-844-962-9200 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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Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
I was a reck talking yo Jason Sklar was easy comfortable he explained everything and put my mind at ease I would recommend the team od sklar to everyone. I have already talked to my ci workers about them
kevin mcweeney
01:13 22 Dec 22
The team at David Sklar & Associates is fantastic.I worked with Jerry whom not only made - what seemed like intimidating process to initiate at first - comfortable.He made everything transparent and took the time to explain the process every step of the way.He was kind, attentive, and professional. Everything was made straightforward and stress free and we found a solution together that worked.Thanks to Jerry and the team.
Jordie Angiolillo
18:22 21 Dec 22
From day one till the end which is today😁 DavidSklar gave me a 5star service and treatment. And I will 100% recommend him and his Associates. This is the best Christmas present ever! Thank you David! More business to come! Merry Christmas and a Happy New Year!!!
barbee diaz
16:37 16 Dec 22
I FOUND DAVID SKLAR & ASSOCIATES BY GOOGLING "BANKRUPTCY" (EARLY NOV. 2021). ON NOV.4, 2021 I HAD A MEETING WITH CORI NARON AT HER OFFICE AT ST CLAIR ANDBATHURST. HER POSITIVE APPROACH TURNED ASTRESSFUL SITUATION INTO A STEP BY STEP UNDERSTANDABLE PROCESSON SEPT. 23, 2022 I OBTAINED MY AUTOMATICDISCHARGE FROM BANKRUPTCY AND MY CERTIFICATE OFDISCHARGE.THANK YOU CORIBRUCE BURGESS
bruce burg
21:35 02 Dec 22
Jerry was wonderful and provided superb service. He is very knowledgeable, trustworthy, and made an intimidating and shame filled time in my life stress free. I hesitated for a long time to take the next step, but Jerry answered all questions, was patient and made the process effortless. I am eternally grateful, and highly recommend Jerry’s services.
M J
18:41 01 Dec 22
Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
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