Life During The Consumer Proposal Process

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When you’re insolvent and considering Consumer Proposals or Bankruptcy, one of the big questions you may have is how insolvency will change your life. What’s the process like, what’s it like renewing your mortgage, what happens to your credit card debt, and is it always successful? These questions get asked a lot, which is why we put together a glimpse into life during the Consumer Proposal process.

#1 Filing a Consumer Proposal in Toronto

Filing a Consumer Proposal in Toronto provides you with relief right away – when your Licensed Insolvency Trustee files your Consumer Proposal, your creditors have 45 days to object to your proposal or accept it. During those 45 days, unsecured creditors must stop charging interest, stop collection calls and legal actions, and stop their collection efforts, including wage garnishments. You also stop making payments to those unsecured creditors for those 45 days.

At David Sklar & Associates, we assist you with creating fair Consumer Proposals that are more likely to be accepted. Few Consumer Proposals are turned down if they offer unsecured creditors more money than they would receive in a bankruptcy. One of the benefits of a Consumer Proposal vs bankruptcy is that’s advantageous to all parties, but if a creditor objects, then all creditors must vote on it. If creditors to whom you owe more than 50% of your debt (in dollars) reject your proposal, you may be left with no choice but bankruptcy.

#2 Credit Card Relief

Consumer Proposals offer credit card relief by restructuring your debt and coming to a new agreement with your creditors to repay your debt. Within five years, you pay a portion of the debt you owe the credit card company. As Licensed Insolvency Trustees, at David Sklar & Associates we can help with your Consumer Proposal if you can’t pay your credit card debt and other unsecured debts.

#3 Defaulting on a Consumer Proposal in Toronto

Credit counselling is an important part of going through the Consumer Proposal process, and David Sklar & Associates offers it. Credit counselling teaches you about budgeting, cutting expenses, using credit wisely, and rebuilding your rating. It also keeps you on track to pay your Consumer Proposal, because defaulting can leave you in a tricky situation. The proposal can be annulled if you miss three months of payments, putting you right back where you started and potentially facing bankruptcy. It’s our job to create a Consumer Proposal that’s fair to you, and that you can reasonably pay off within the set timeframe.

#4 Mortgage Renewal in a Consumer Proposal

Many of our clients’ number one concern when they are insolvent is the fate of their home. A Consumer Proposal keeps your home off the table and puts you in a position where you can keep paying your mortgage, but clients often worry about dealing with a mortgage renewal while in a Consumer Proposal. If you’re worried about mortgage renewal during a Consumer Proposal, speak with us at David Sklar & Associates and we can help you prepare for a fair mortgage renewal. The good news is that if you make your payments on time and you can prove your ability to continue making payments, you should not have trouble at all.

A Consumer Proposal puts you on the path back to good financial health. Talk to a Licensed Insolvency Trustee and get the assistance you need to get out of debt the right way.

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
1695320109
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
1694547608
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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