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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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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Call 1-844-962-9200 or fill out the form below. We’ll do the rest.

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