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. 

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest

Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
js_loader