Debt Relief in Ontario – Consumer Proposals

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 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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