What happens if you default on a Consumer Proposal?

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Defaulting on a Consumer Proposal

A concern that may arise with your consumer proposal is, what happens if I default on my consumer proposal? When your consumer proposal is accepted, you are legally required to accept all of the conditions of the proposal. This is legally binding you and your creditors. You are to make the agreed upon payments as stated in the proposal. As long as you are following the agreed terms of your proposal, your creditors cannot take any further action against you.

If you fail to meet the agreed terms of your proposal and/or miss three months of payments, the proposal will be deemed annulled. You have the option of amending a consumer proposal within the three missed proposal payments. With amending a consumer proposal, this is a asking your creditors to alter the terms of the consumer proposal. With your consumer proposal, if three payments are missed, and it has not been amended, then it is automatically deemed cancelled/annulled.

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With David Sklar and Associates, we help with providing our clients with the proper knowledge and tools to help make improved financial decisions so they do not run into these situations in the future. Going through a consumer proposal for anyone will require changes to their financial spending habits as they learn to manage their finances and repay their debts. With David Sklar and Associates, the majority of our proposal clients are able to make the payments in full and on time.

Ultimately, every case is different as there may be unforeseen issues that may arise that can affect your financial situation where you are not able to meet the agreed upon terms. Regardless, if three payments are missed, and your consumer proposal has not been amended, then it is automatically deemed annulled, and your creditors can take the necessary legal action for recollecting the debts you owe to them.

More information on amending a consumer proposal is available that can help to further explain the options you may have.

If you are incapable of dealing with your debt and would like to speak with a caring trustee at David Sklar and Associates, call us now at 416-498-9200 to book your free consultation.

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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Chan Abdulla
My visit at David Sklar & Association was great. I met Samycha and she was amazing and treated me with compassion and was never judge by anyone there at the office. I will recommend anyone that is looking for a new start in life again to book an appointment at David Sklar & Associate's. All the staff there is very polite and treat you like you are special.
Sheena
Extremely professional, empathetic, honest and down to earth.I felt as those I had previously known Samycha for years. Her ability to relate, understand and assist with my situation was comforting. Very happy with their services.
Simone Foster
The company as a whole is fantastic. If you’re not ready or serious they won’t harass you with cold calls but when you are ready they will help you with a realistic plan. Everyone I’ve worked with is efficient and knows what they’re doing. Just like everyone in the comments I have to praise Cori who I would describe to people like the auntie who knows best lol thank you for everything.
Ricardo Villa
Jerry Janiec and Hernee Templonuevo have been very helpful from beginning to end. Hernee is knowledgeable of what it is that is required of you regarding pertinent documents that they need. Jerry provides a clean picture of your options and makes recommendation that is suited with your current situation. Thank you, both.
Trish Gee
David Sklar & Associates… they work for you. They do everything they can to help you get out of debt. They lower your debt, then help you rebuild your credit. They care about helping Canadians get out of debt.I’m in a fair amount of debt, and they almost cut my debt in half for me, and in just five years, I will be debt-free, because of them. I’ve been sick because of the amount of debt looming over my head. After my first meeting with Grace, I feel so much better. Grace set up a Consumer Proposal to help me get out of my debt, and I can see an end to my debt. My mental health has gotten so much better since that first meeting, and I owe it all to Grace, and everyone at David Sklar & Associates. Thank you, all!
ronald hall
Trina was the one who handled my case. She was understand, patient and professional.
Chris B
Very professional and thorough
Miroslav Dobrilovic
Prompt and very professional responce,By my counsellor Jerry JaniecMake me belive, I'll be out of woods!
Godly Cruz
Cori was very helpful and kind. She thoroughly explained the process and guided me patiently all throughout. David Sklar & Associates is truly commendable.
Andy Bailey
It was a good experience with this company. I appreciate the time they took to help with my experience. Thank you very much and look forward to further business with you.
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