Debt Management Programs vs Consumer Proposals

Debt

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Debt Management Programs

One of the options available to people in Ontario who are unable to pay off their unsecured debt, is the Debt Management Program – a service overseen by non-profit, professional credit counsellors.

With a Debt Management Program, the credit councillor contacts the unsecured creditors in an effort to have them agree to reduce or stop charging interest on outstanding balances, with the understanding that the debtor (person who owes the debt) will repay the entire amount owing over a set period of time.

Since a Debt Management Program is not a legally binding agreement, those creditors who choose to ignore the offer are free to continue their collection efforts.

There is no charge for the Debt Management Program – however, depending on the applicant’s financial situation they may be asked to make a contribution.

Consumer Proposals

Covered by the Bankruptcy and Insolvency Act, Consumer Proposals are legally-binding agreements between debtors and their unsecured creditors. Administered by licensed Bankruptcy Trustees, Consumer Proposals usually result in settlements that are for less than total amount owing.

If the Trustee and applicant agree, a Proposal is drawn up and registered with the Office of the Superintendent of Bankruptcy. The Trustee then contacts the applicant’s creditors who vote on the Proposal. Once a Consumer Proposal is accepted by the majority of the unsecured creditors, all unsecured creditors must honour the terms of the Proposal. This means that all the unsecured creditors must then:

  • Stop all legal collection action.
  • Remove garnishees.
  • Stop all collection efforts.
  • Stop all interest charges.

Proposals cannot run for more than five years.

There are charges for using the services of a Bankruptcy Trustee, however they are taken into consideration when the Proposal payments are calculated, ensuring that the total monthly cost (including debt repayment) is reasonable and often substantially less than would be paid out on a Debt Management Program.

Which is the Best Option For You?

Obviously, we believe strongly in Consumer Proposals – we are Licensed Bankruptcy Trustees who have helped thousands of people in the Greater Toronto Area through the Proposal process. However, we also believe in the need for people in financial difficulty to get as much information as they can, to ensure they make the best decision for their needs – which is why we offer a free initial consultation to explore all available options.

If you are in the Greater Toronto Area and find yourself overwhelmed by debt, contact the caring professionals at David Sklar & Associates. Call 416-498-9200 and book your free consultation today.

 

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
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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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