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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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
Medanun
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