Reduce Debt with a Consumer Proposal

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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, 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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I can't praise Cori enough from David Sklar & Associates. Cori's acceptance and understanding of the diverse needs and concerns of her clients shines through with zero judgement. She made this process smooth and relieved much of my stress and anxiety around debt. Thank you!
Karen Swan
My husband worked with Chen Siga, he walked us through our options and then through the process of getting everything done. Everyone we dealt with was very helpful. Overall a wonder experience, we are so glad we contacted them and got the help we needed.
Amanda Thomas
I have been surviving on paycheck-to-paycheck basis and could not go any further because the lending interests just accumulated beyond what I can afford. Fortunately, a good friend recommended Grace Cuffaro from David Sklar & Assoc. and I finally got to settle my financial obligations in a reasonable way. Don't go anywhere else; ignore those financial brokers and social media ads who just want more money from you - go directly to the people who can really save you from drowning in debt.
REX ADAME Southern Ontario Canada
I recently had the privilege of working with Trina at David Sklar & Associates, and I cannot praise her enough. Trina’s commitment to her clients goes above and beyond the norm. Here’s why she stands out:Incredible Knowledge: Trina is well-informed and deeply understands her job. Her expertise shines through as she navigates complex processes effortlessly.Client-Centric Approach: Trina doesn’t just follow procedures; she genuinely cares about her clients. She takes the time to listen, empathize, and tailor solutions to their unique situations.Clear Communication: Explaining financial matters can be daunting, but Trina excels at breaking down each step of the process. Her clarity and patience make even the most intricate details understandable.Availability and Accommodation: Trina’s dedication extends beyond office hours. She accommodates last-minute changes and ensures her clients feel supported throughout their journey.In summary, Trina is a gem in the world of customer service. If you’re seeking debt resolution, don’t hesitate to reach out to David Sklar & Associates—and ask for Trina. You’ll be in capable, caring hands.Thank you, Trina, for making a difference!
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Jerry Janiec is very helpful and professional. Thank you.
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Unbelievable people who just want to help and I'm thankful
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Professional, knowledgeable and people oriented. Unfortunately for me, I had to ask for their assistance a few time and never regret about their service. 5 out of 5. Highly recommended.
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Jackie Stanley and her assistant Sarah have been so helpful with such an important matter to me and my family. thank you for all your help through this hard period of our lives.
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Trina and her staff were great, excellent job explaining on what will be required of me regarding my situation. Very helpful staff. Would highly recommend Trina and her staff.
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