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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Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
David
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
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