Debt Management Programs vs Consumer Proposals

Debt

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 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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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 had a great experience with Rhoda at the Mississauga location. Extremely knowledgeable and helpful, she made me feel confident I had made the right choice contacting David Sklar and co. Highly recommend.
Maria Curbelo
19:59 18 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
Reached out to Jackie, who was very cordial and professional. Highly recommended.
The Lit Lion
16:54 16 Jun 21
I must admit that I am so glad I called! I spoke to Rhoda Lewis who right away made me feel at ease. She's so caring and supportive I highly recommend her. Thanks to her my life is now on track! Thank you David Skylar & Associates Inc!
Grace Muller
17:55 25 May 21
Very professional and courteous. Jackie was very helpful and understanding. She was happy to answer any questions I had and we were able to process everything quickly with no hassle.
Nicholas Burnett
17:07 19 May 21
I would say my experience with David Sklar was spectacular, they made it really easy for my through the whole process and now 9 months later my bankruptcy is discharged.i would recommend David Sklar to anyone.
HN
23:00 06 May 21
I had a nagging defaulted student loan that was holding me back. There were a few smaller issues that were compounding. The lockdowns really forced me to look into building back my credit and starting fresh.Ashley at David Sklar & Associates at the Keele and Finch location was a blessing. She was thorough in her explanations and answered any concerns I had. She gave me the options and let me decide what was best. After conferring with her, I decided bankruptcy was the best option. She made the process of filing for bankruptcy easy.There's nothing to be afraid of. Stigma attached to bankruptcy but you can reset if you work hard to make it happen.I highly recommend speaking with Ashley if you have any concerns about debt solutions.
A M
14:39 04 May 21
I highly recommend David Sklar & Associates Inc. They helped me with my finances along with the help of Ashley Carter whom assisted me thoroughly throughout the process of my Consumer Proposal. She is very friendly, professional and updated me occasionally through emails. With her tremendous help, I am very thankful to have accompanied someone like her!
Pilar
21:05 28 Apr 21