Canadian Government Debt Relief Program: Consumer Proposals

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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, 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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The staff at David Sklar are absolutely life changing and phenomenal people to work with. They are a well dedicated team whose personal mission is to truly help you turn your life around. Don’t be afraid to call them. Don’t be afraid to be honest to ask for the help you need. Rest assured no matter your debt load they will assist without judgement and deliver with compassion the best way forward to legally seal your debts and give you a real chance again at life. I highly recommend their services. They changed my life. They will gladly help you too. My personal consultant Trina Powell is an incredible, smart, and extremely supportive ally. But know you’re in good hands no matter who they assign to help you. Change your life today and pick up the phone and call them you’ll only be sorry you waited so long.
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This was an is an excellent experience for me because I am now able to retire comfortable in five years an debt free. Life seems to now begin. I should have done this earlier. But I did not have a company to do a consumer proposal with that I trust. Thank you for saving me.
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