What happens if you default on a Consumer Proposal?

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Richard Sklar, CIRP, LIT
Licensed Insolvency Trustee

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, 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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David Sklar & Associates Inc.

4.9

Based on 831 reviews

David Sklar & Associates Inc. – Consumer Proposals & Licensed Insolvency Trustees

4.9

Based on 831 reviews

I worked primarily with Christine, who was very friendly and outgoing. She was quick to help me, and explained everything I needed to know very well. She's quick to answer any questions I may have as well. The other members I spoke with were also very kind and jovial, and were happy to help me with anything they could. They made sure my proposal fit within my budget, and got everything going very quickly. I was happy to work with them, and would highly recommend their very friendly service!

Melissa McAllister

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Very processional and understanding of my situation. Thanks to all your team.

Luc Valade

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Jennifer Norton's exceptional assistance with my consumer proposal was life-changing. Her professionalism, expertise, and dedication were evident from the start. Jennifer's thorough explanations and attention to detail created a tailored proposal that set a clear path to financial freedom. She went above and beyond, advocating for my best interests and providing invaluable support. Thanks to Jennifer, I'm on track to a stress-free financial future. I wholeheartedly recommend her – she's not just a financial expert; she's a life-changer. Thank you, Jennifer!

Thomas

1695089142

They made a difficult situation, easy thank you.

Ray Barkley

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I had a great experience with Christine from David Sklar & associates. Very professional, and easy to get through. Thank you

fukinwith doug

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Great customer service and a smooth process to get your finances on track. Informative and thorough.

Adrian Downey

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From the moment I sat down in the office, I felt welcome and at ease. Grace Cuffaro was both friendly and highly informative. She is extremely knowledgeable and answered all of my questions in detail, making sure I understood before moving on. I was reassured throughout the process that I was making the right decision and that it was not uncommon nor anything to be ashamed of. I didn't expect my appointments to be such positive experiences, but that's exactly what they've been!

P Bains

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I was in a tough financial position and found myself searching for relief. I came across David Sklar & Associates page when doing my research on financial advice. The reviews were amazing, but I was concern because I didn’t know what to expect. I made the decision to set up a consultation and had the pleasure to meet with Jennifer Norton. Right from the beginning, she was attentive, knowledgeable, and pleasant to meet with. The experience was painless and very educational. Jennifer made sure I understood my choices, answered my questions, and concerns promptly, in person, over the phone and via email. I’ve been working with Jennifer for a couple months now and I am pleased that Jennifer is the manager handling my file. I would and have recommend Jennifer Norton, David Sklar & Associates to anyone in need of direction regarding finances.

A.L Thompson-Lawrence

1694547608

I had my first meeting with Jennifer, she was really understanding and extremely helpful, and got everything done in a timely manner.

Tamas Wint

1694534757

Jennifer Norton has been the most helpful throughout this truly embarrassing situation that I find myself in. She is informative, understanding, and there is absolutely no judgment. She has handled everything in a very professional and respectful manner and I am SO glad that I have them on my side. Definitely a huge weight off my shoulders.

Jody T

1694533927