Canadian Government Debt Relief Program: Consumer Proposals

debt relief canada

Consumer Proposals:  Government Debt Relief Programs in Canada

A consumer proposal is a Canadian federal government debt relief program that is available to those “honest but unfortunate” people who have more unsecured debt than they will ever reasonably be able to pay back on their own.

Unlike other debt relief options, consumer proposals are legally binding agreements between debtors and their creditors. Proposals are governed by the Bankruptcy and Insolvency Act, and are monitored by the Office of the Superintendent of Bankruptcy.

Note: in Ontario, proposals can only be filed and administered by licensed trustees in bankruptcy, such as David Sklar & Associates.

What’s Covered

Consumer proposals provide debt relief on unsecured debts such as credit cards, bills, payday loans, CRA taxes, etc. Secured debts such as mortgages are not covered. There are some types of unsecured debt that cannot be removed with a proposal including: alimony, child support, court fines, and some student loans.

What Happens

In a proposal, the debtor, through his/her trustee, formally offers to pay back a portion of their unsecured debt over a period of up to 5 years, at the end of which time they will be released from their debts. The majority of creditors must vote to accept the proposal before it becomes binding.

In addition to making regular payments to the trustee for disbursal to their creditors, the debtors must attend credit counselling sessions where they will receive the training and skills needed to manage their finances.

Benefits of Consumer Proposal Debt Relief for Debtors:

  • keep assets
  • avoid bankruptcy
  • stop collection calls
  • stop interest charges
  • remove garnishees

Need More Information?

If you are in financial distress, and unable to repay all of your debts, you may qualify for a consumer proposal. To find out more about this government debt relief program, you need to speak with a Licensed Insolvency Trustee.

If you live in the Toronto area, you are welcome to contact David Sklar & Associates, Licensed Insolvency Trustee for a FREE, no-obligation consultation. We will review your finances with you in private, and discuss all of your debt relief options. Call us a 416-498-9200 to book your free consultation at one of our six convenient locations.

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?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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