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?

I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
My experience with Ashley Carter at David Sklar and Associates was very pleasant and professional. The process was made easy by Ashley with her help in answering my questions and concerns.
Alex Lamparter
13:07 03 Sep 21
Ashley she was extremely helpful,super friendly and understanding my situation. I am very please for the service I received and I will recommend this Company to anyone in need of consolidating. Thanks so so much.
Nicole Minister
17:43 02 Sep 21
I finally pulled the trigger and seek help from this team. I tried to pay my debt in the way it should be until the pandemic made it even worst and couldn't keep up with my payments anymore. Jackie is an amazing person, I told her the problem, she gave me the solution and gave me a variety of options and walked me through the process. That simple. Thank you so much.
rr 28
12:44 21 Aug 21
Dealing with Jackie made the process so much more comfortable. From my first phone call with her I never felt like I was being looked down on. Jackie made this as easy as being in this situation could be.
Vi Smith
18:09 13 Aug 21
I have to say, I never thought that such process could have been so quick and easy. But then again I guess that's what happens when you deal with professionals. I dealt personally with Rodha Lewis, who was very attentive to my personal issue and very professional on her work. She's someone who will actually take her take and talk to you about the process and help you as much as she can. I am very grateful to her and very appreciative of her work. I couldn't have dealt with someone better. Thank you very much Rodha for your work.
fidel Cruz
14:35 24 Jun 21
I just completed my proposal and I am thrilled. Rhoda was delightful to work with. She helped me end the phone calls and start rebuilding my life. I highly recommend the services here and will always recommend to anyone who asks. Definitely seek out their services if you are in need of some help.
Maria Curbelo
13:43 23 Jun 21
Very professional and fast service! Also, personable!.. they don't treat you like a number, but like a person.From the time I first contacted them, until I was set up there has been not more than 7 days.I dealt with Jackie, she was great!
Jelena Petrovic
18:06 20 Jun 21
I would just like to say thank you to David Sklar & associates for helping me out in this difficult time I was in way over my head, I was introduced to Jackie Stanley, at that moment things got better the calls stop. Jackie was so professional helpful, trusting answered all my calls all my Text, and emails professionally and respectful!! I can’t believe it, and now I’m gonna build my credit rating back up and have my life back Thank You, Jackie Stanley at David Sklar& associates, for doing an outstanding Job!!!!
Mark Simmonds
21:50 16 Jun 21
I am not very good at putting words together especially when your speechless for all the help from such a friendly happy non judgemental team. From being financially stressed and depression hitting all at once I connected with Jackie Stanley💯❤❤ from David Sklar team in a whole other level,she is an absolutely joy to deal with and very informative let me know there is light at the end of the tunnel.. despite my struggle the amazing lady Jackie Stanley was able to put a smile on my face and make me laugh super happy and grateful 🙏I was able to connect with her from David Sklar &Associates team I 💯 percent recommend her (Jackie Stanley) and will continue to recommend her. To any one looking to get out of debt or have any questions belive me when I say you will not be disappointed with Jackie she's such a great person and I'm lucky to have been able to recieve the help and guidance from such a wonderful person and you will be also...look no further no where but up from here ...Thank you So so much Jackie much appreciated
Richelle Barriault
17:57 16 Jun 21