What happens if you default on a Consumer Proposal?

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.

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 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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I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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