Reduce Your Debt And Protect Your Assets With A Consumer Proposal

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 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?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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