Debt Relief in Ontario – Consumer Proposals

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A Fresh Financial Start

Residents of Ontario who find themselves insolvent – that is they lack the resources to repay their existing debts in a reasonable period of time – may be eligible for a federally-legislated debt relief program called a consumer proposal.

A consumer proposal is a legal agreement between a debtor and their unsecured creditors to repay a portion of their debt over a period of up to 5 years. Upon successful completion, they are released from their unsecured debt.

Because it is a legally-binding agreement that this covered by the Bankruptcy and Insolvency Act – a consumer proposal offers a number of features and protections that are simply not available through other non-regulated programs.

How Does It Work?

In Ontario, only bankruptcy trustees can file and present consumer proposals to creditors. Bankruptcy trustees are licensed by the Superintendent of Bankruptcy, undergo extensive training, and are bound by the law and regulated codes of conduct that ensure the process is fair to all parties.

To make certain that everyone who needs to speak to a trustee has access, the initial consultation is free. During the consultation, a person’s finances are reviewed in full and all of their viable options for getting out of debt are discussed.

While most unsecured debts such as credit cards, payday loans, income taxes, utility bills, rent, etc are covered in a proposal, there are a number of exceptions that the trustee will review in detail.

The trustee determines if a person is insolvent and eligible for a proposal – however it is up to the person to decide whether or not they wish to file.

If the person decides to file, a proposal is prepared, filed with the Office of the Superintendent of Bankruptcy and submitted to the unsecured creditors for approval. When over 50% of the voting unsecured creditors (by dollar amount) agree to the proposal, it becomes binding on all of the unsecured creditors. Note – most proposals are accepted by the creditors.

Protection from Unsecured Creditors

The consumer proposal provides protection from the all the unsecured creditors in the proposal, whether they voted for the proposal or not. By law these creditors must:

  • Stop all collection calls
  • Stop all legal action
  • Stop charging interest

In exchange – the person who has filed the proposal must honour all the terms of the proposal including:

  • Make all of the required monthly payments to their trustee for disbursal to creditors.
  • Attend credit counselling sessions

Flexibility of Payment Scheduling

For people who do not have a traditional monthly income, but qualify for a proposal – the agreement may be structured to meet their non-standard payment requirements.

If a person’s income increases, or they experience a financial windfall during the proposal, they have the option of paying off the proposal early. Note – an increase in income does not affect the terms of the proposal.

If a person’s income decreases, and they are unable to make their payments, it may be possible for the trustee to renegotiate the proposal.

Find Out More

If you live in the Toronto area and are considering a consumer proposal you are welcome to call us at 416-498-9200 to book a free consultation at one of our 6 office locations. Our caring, licensed professionals will meet with you in a professional and supportive environment – and discuss all of your options for getting out of debt.

If you live outside the Toronto area, check with the Superintendent of Bankruptcy to find a licensed bankruptcy trustee in your area.

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
1694804075
Great customer service and a smooth process to get your finances on track. Informative and thorough.
Adrian Downey
1694799042
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
1694670814
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
1694533927
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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