Life During The Consumer Proposal Process

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 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?

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
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