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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Very processional and understanding of my situation. Thanks to all your team.
Luc Valade
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Jennifer Norton's exceptional assistance with my consumer proposal was life-changing. Her professionalism, expertise, and dedication were evident from the start. Jennifer's thorough explanations and attention to detail created a tailored proposal that set a clear path to financial freedom. She went above and beyond, advocating for my best interests and providing invaluable support. Thanks to Jennifer, I'm on track to a stress-free financial future. I wholeheartedly recommend her – she's not just a financial expert; she's a life-changer. Thank you, Jennifer!
Thomas
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They made a difficult situation, easy thank you.
Ray Barkley
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I had a great experience with Christine from David Sklar & associates. Very professional, and easy to get through. Thank you
fukinwith doug
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Great customer service and a smooth process to get your finances on track. Informative and thorough.
Adrian Downey
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From the moment I sat down in the office, I felt welcome and at ease. Grace Cuffaro was both friendly and highly informative. She is extremely knowledgeable and answered all of my questions in detail, making sure I understood before moving on. I was reassured throughout the process that I was making the right decision and that it was not uncommon nor anything to be ashamed of. I didn't expect my appointments to be such positive experiences, but that's exactly what they've been!
P Bains
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I was in a tough financial position and found myself searching for relief. I came across David Sklar & Associates page when doing my research on financial advice. The reviews were amazing, but I was concern because I didn’t know what to expect. I made the decision to set up a consultation and had the pleasure to meet with Jennifer Norton. Right from the beginning, she was attentive, knowledgeable, and pleasant to meet with. The experience was painless and very educational. Jennifer made sure I understood my choices, answered my questions, and concerns promptly, in person, over the phone and via email. I’ve been working with Jennifer for a couple months now and I am pleased that Jennifer is the manager handling my file. I would and have recommend Jennifer Norton, David Sklar & Associates to anyone in need of direction regarding finances.
A.L Thompson-Lawrence
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I had my first meeting with Jennifer, she was really understanding and extremely helpful, and got everything done in a timely manner.
Tamas Wint
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Jennifer Norton has been the most helpful throughout this truly embarrassing situation that I find myself in. She is informative, understanding, and there is absolutely no judgment. She has handled everything in a very professional and respectful manner and I am SO glad that I have them on my side. Definitely a huge weight off my shoulders.
Jody T
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Rhoda, Jerry, and the entire David Sklar & Associates Staff were very professional and were great to work with. They taught me a lot regarding financing and I would recommend them to anyone facing financial troubles as well. Rafael L
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