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. 

Share This!

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

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
js_loader