Reduce Your Debt And Protect Your Assets With A Consumer Proposal

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When debt catches up with you, you might be inclined to panic. You can feel trapped, overwhelmed, or paralyzed by financial constraints. When wage garnishments affect your ability to balance your own budget and collection calls leave you sleepless at night, it’s hard to find a way out. We help clients who don’t know how to move forward with their financial future. One of the most common things we do is file Consumer Proposals in Ontario for our clients, and it might be the right path for you.

Pros and Cons of a Consumer Proposal

As Licensed Insolvency Trustees, at David Sklar & Associates we regularly find that a Consumer Proposal is the better way to help individuals get out of debt. While the pros outweigh the cons, no debt solution is perfect, and you should carefully consider Consumer Proposal pros and cons before talking to a Licensed Insolvency Trustee to file.

The pros of a Consumer Proposal include:

  • Reducing the amount of debt you have to pay back, and giving yourself up to 5 years to pay it back in affordable installments
  • Halting the accumulation of interest on your debt
  • Stable monthly payments that do not change over time, even if your income changes (unlike bankruptcy)
  • Putting a stop to wage garnishments and collection calls from your unsecured creditors
  • As long as you make your payments, you get to keep your assets
  • A smaller impact on your credit score, remaining on your credit history for only 3 years, as compared to the 7 years involved in a bankruptcy

The cons of a Consumer Proposal include:

  • Annulment if you miss 3 months of payments, though you can file for an amendment (before missing payments) if you no longer have the means to keep up
  • Your credit score is still affected
  • Limitation to unsecured debt only, meaning car loans and mortgages are outside of the Consumer Proposal

If you qualify for a Consumer Proposal, the pros outweigh the cons, and it compares favourably to bankruptcy and debt consolidation. Personal bankruptcy involves settling debts but losing non-exempt assets and it remains on your credit history for seven years after. Debt consolidation loans, meanwhile, can leave you paying more interest on a lump sum than you were paying before. The only time debt consolidation loans make sense are when the interest rate is lower than the combined interest of your unsecured debts; for example, if you can get a loan from a bank.

Should You Pay Your Consumer Proposal Off with a Loan?

That’s also the reason you should not try to pay off your Consumer Proposal immediately with the help of a loan. Sometimes our clients ask if it’s a good idea to pay it off right away by taking out a new loan; since your Consumer Proposal comes off your credit history within three years, doesn’t it make sense to pay it off as soon as possible? Most of the time, the answer we tell our clients at David Sklar & Associates is no. That’s because your interest stops accumulating with a Consumer Proposal, whereas any loan will need to be paid back with interest. You save money by staying patient and paying back your Consumer Proposal with time.

Working with us means far more than just filing a Consumer Proposal in Ontario. We can answer all your questions and give you advice about restoring your credit score. We also offer credit counselling at David Sklar & Associates so that you can learn how to avoid falling too far into debt in the future. If you’re in trouble with debt, give us a call.

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 am very pleased with the experience with your company. Great customer service and very professional. They made me feel like dealing with caring and friendly people. Jackie is a sweet lady. All of them very helpful.
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Great and friendly staff. They went out of their way to help me with the process. David Sklar and Associates are more then professionals. Christine sylver helped me with every steps, everytime I asked for more help she was always there for me with a smile. Very professional and patient. I want to thank Christine Sylver for everything she did to help me through this process and by giving me a new start.
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It was easy to get everything started and I am happy that I choose you, thank you.
Marina Granado
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I came in with a lot of anxietyChristine SylverHernee Templonuevogave me the confidence I needed
George Carvalho
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A great place to find out the best way to remove your debt. I discussed my problem with a with a fantastic lady who's named Grace. This lady showed me a couple of ways to lower my debt and I chose one. Thanks to Grace one day I will be out of debt, but until then my spending without cause has come to an end.To the staff and especially Grace of David Sklar and Associates thank you.Bob Barnesi will be one day out of debt
Robert Barnes
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A wonderful experience with a very depressing financial situation.Cori is easy to talk to and understand, with what she is describing.
Verble Daniels
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The staff at David Sklar are absolutely life changing and phenomenal people to work with. They are a well dedicated team whose personal mission is to truly help you turn your life around. Don’t be afraid to call them. Don’t be afraid to be honest to ask for the help you need. Rest assured no matter your debt load they will assist without judgement and deliver with compassion the best way forward to legally seal your debts and give you a real chance again at life. I highly recommend their services. They changed my life. They will gladly help you too. My personal consultant Trina Powell is an incredible, smart, and extremely supportive ally. But know you’re in good hands no matter who they assign to help you. Change your life today and pick up the phone and call them you’ll only be sorry you waited so long.
Kelly Silke
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This was an is an excellent experience for me because I am now able to retire comfortable in five years an debt free. Life seems to now begin. I should have done this earlier. But I did not have a company to do a consumer proposal with that I trust. Thank you for saving me.
Carilyn HoseinAdams
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