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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The team at David Sklar and Associates Inc are very professional and are willing to help you get out of debt. Highly recommended.
Melissa MacKenzie
12:35 29 Mar 23
I would like to thank the team at David Sklar and associates inc. for all the time and effort they put in to support this process for me. This topic can be challenging to disclose but a big thank you to Christine for going above and beyond in guiding me through all my options and supporting me through the decisions. I cannot recommend this group enough , as they have shown me compassion , knowledge , and understanding throughout the entire process. I look forward to the next step of this process and learning how the proper way of becoming financially educated through the support of their financial counselling team. For anyone who is struggling , just know that there is a wonderful group of educated professionals at David Sklar who are available to help!
Michelle Plouffe
18:45 14 Mar 23
It took me awhile to get up the courage to contact David Sklar but I’m so glad I did. Trina walked through my options with me and provided the knowledge I needed to make a decision to help turn my financial situation around. She is patient and empathetic and answered any and every question that I had. Trina provided me the reassurance I needed that I was making the best decisions for me and my family. I’m so happy that I reached out and now have a plan to get back on track.
M. Mackenzie
19:59 12 Mar 23
Trina was very helpful and thorough.
Sam M
15:26 12 Mar 23
Christine was very helpful, kind, and understanding. She explained everything thoroughly, answered any questions I had, and was responsive to any concerns I had. 100% would recommend
Katherine Campbell
17:29 08 Mar 23
Jackie Stanley is excellent she took the time to explain everything to me and I am so grateful to her for giving me a fresh financial start so if you have any doubts don’t and go see her if you want to achieve financial freedom!
Heather Helfield
21:24 06 Mar 23
Amazing friendly staff that knows what they are going. They make a difficult situation not so bad. Would give 10 stars if I could.
alie Balan
22:37 25 Feb 23
Very helpful and kind and gave me all the available options before helping me decide which one was best for me. I would definitely recommend Jackie
Alison Rivard
01:01 21 Feb 23
Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
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