Reduce Debt with a Consumer Proposal

Reduce Debt and Avoid Bankruptcy with a Consumer Proposal

For those people who are unable to repay their debts in an orderly fashion for the foreseeable future – a consumer proposal may be their best option to reduce debt and avoid bankruptcy.

What is a Consumer Proposal?

A consumer proposal is a legally binding agreement governed by the Bankruptcy and Insolvency Act – between a debtor (the person who owes money) and their unsecured creditors.

Unsecured creditors include: credit card companies, utilities, payday loan firms and other types of creditors who do not have any of the debtor’s assets used as security.

Note: some unsecured debt such as child support, alimony, court imposed fines, and some student loans, may participate in the proposal terms, however, upon completion of the proposal terms, there may still be amounts owing after receiving dividends through the proposal terms. Your Trustee will provide further information in the regard at your first meeting.

What is the Consumer Proposal Process?

In Ontario – only federally licensed Trustees in Bankruptcy can file and administer consumer proposals.

Individuals seeking the protection of a consumer proposal, must meet with a Trustee and go over their finances in detail.

To proceed with a proposal, a Trustee must determine if an individual:

  1. is insolvent – unable to pay their debts as they become due;
  2. would be able to pay back a portion of their outstanding debt over a period of time (up to 5 years); and
  3. is willing to enter into and honour a legally binding agreement with their creditors.

Then the Trustee, working with the client, draws up a proposal offering to pay the client’s unsecured creditors a reduced portion of their outstanding debt, to be paid back over a period of time (up to 5 years).

The Trustee then files the proposal and submits it to the creditors for approval.

If a majority of the creditors accept the proposal, it becomes binding on all of the creditors.

All unsecured interest charges and collections efforts must, by law, stop once a proposal is filed. This includes the removal of garnishees.

Once the debtor successfully completes all the terms of the proposal, they are released from all the unsecured debt covered by the proposal, other than debts found to be within the meaning of Section 178 of the Bankruptcy and Insolvency Act, which your Trustee will review with you.

How Much Does a Consumer Proposal Reduce Unsecured Debt By?

The amount varies depending on the individual situation but will no doubt have a significant impact on your financial state.

How To Find Out if You Can Reduce Debt with a Consumer Proposal

Speak with a Licensed Insolvency Trustee.

If you live in the Toronto area, you can book a Free, confidential consultation with David Sklar & Associates Inc, Trustee in Bankruptcy – by calling 416-498-9200. During your consultation, our caring, supportive professionals will go over your finances in detail and discuss all of your options with you.

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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