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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Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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