Consumer Proposal

What is a Consumer Proposal?

A consumer proposal is the #1 alternative to personal bankruptcy and can reduce your debts by up to 80%. Only a licensed insolvency trustee in Canada can legally help you reach an agreement with your creditors.

You Deserve A Fresh Start.


Consumer proposal Canada

It might sound too good to be true, but you can enjoy debt relief without filing for personal bankruptcy. There’s a little-known program available to all Canadian citizens called a consumer proposal, and our team is licensed to guide you through the process.  It is possible to reduce your debts by up to 80% and only have one low monthly payment to make.

We are the #1 choice for a consumer proposal in Ontario. Let’s get started!

Consumer Proposal Canada
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David Sklar & Associates Inc.
Based on 743 reviews
Nilda H.
20:18 16 Jun 22
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!
Peggy Bulger
15:10 14 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 .
Colleen H
12:50 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.
ariezel erandio
21:33 06 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.
Aliya H
12:11 04 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.
Patty Murphy
21:34 18 May 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
Debbie Livingston
01:24 11 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!!
Cassandra Keenan
21:05 10 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. ❤️❤️❤️
Hubert Z
03:08 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!!
prettylush 13
02:42 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!
Kipyego arap Serem
19:00 09 May 22
I had a good experience with Jackie. Making appointment to see her was easy and follow up was great. I appreciated the detailed information she gave and the clear explanation of the options I had. While I landed on this company without anyone's recommendation, I will be happy to recommend their services to those who need them.
Ankita Sisodia
18:51 09 May 22
Jackie has been really helpful with my issues. She is approachable and friendly and I recommend her to anyone trying to access her services.
Christina Ivany
15:52 07 May 22
The service that was provided to me from Trina at David Sklar and Associates was nothing but superb! I was referred to them through family, and Trina was nothing but understanding and so so so helpful! Every part of the process was smooth and efficient and she explained everything to me so I would be able to understand the process. Can’t believe the weight that has been lifted off my shoulders. Thank you so so much Trina!
Linda Bennett
15:29 06 May 22
I’m so glad that I spoke to Rhoda. I was nervous having to claim bankruptcy, but Rhoda is very resourceful and has a wonderful way of putting you at ease. I felt like I was speaking to my best friend. Rhoda from the bottom of my heart thank you for your help and kindness it goes along way. Linda Bennett
Emma Higgins
19:14 02 May 22
I was absolutely terrified of admitting I needed help and was in a tough position where my best option was to file for bankruptcy. As someone with severe anxiety it was one of the hardest calls I had to make but once I spoke with Trina at David Sklar she immediately made me feel at ease and like I was in good hands. I mostly dealt with Trina and Eva who were so kind and communicative throughout the whole process and made it as painless as possible.I did briefly speak with a couple of other associates from time to time and they were also equally as lovely. The reviews for this company obviously say a lot about these guys and it rings true. I’m not someone who usually writes lengthy reviews but I am happy to recommend David Sklar and associates for anything. Thank you guys for always treating your clients like human beings and always being available for questions or concerns.
Jan Toone
00:43 28 Apr 22
I’m finally debt free! I made the right decision by contacting David Sklar to help me with my debts. Grateful to his Associates, especially Cori Naron, she’s very approachable, knowledgeable and kind. She indeed helped me succeed (with her advices and experiences) to pay off my balance before my due date 😇. Her office at St. Clair Ave. West is very accessible as well. I can now focus with my other goals - for I am a mother of Four….
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Why Choose A Consumer Proposal?

A consumer proposal is an alternative to bankruptcy for people who can’t afford to pay their unsecured creditors. A consumer proposal is a legally binding process under the BIA that enables people to pay a significantly reduced (for example up to 80% reduction)amount of their outstanding unsecured debt, over a period of not more than 5 years, after which they will be released from most, if not all their unsecured debt. Only a licensed insolvency trustee can legally help you reach an agreement with your creditors under the BIA. Your monthly payments will be based on your income, expenses, assets, and what you can afford to pay. The proposal is a fair solution for everyone involved and allows you to keep your assets, such as your car and your home.


A consumer proposal can reduce what you owe by up to 80%

$10,000 $250,000

Your Options
What you pay
Consumer Proposal (0% Interest)
Do Nothing (19% Interest)
Debt Consolidation Loan (30% Interest)

* Calculations are made over a 5 year period

*This is a tool for comparisons purposes only. We have used average interest rates in these calculations and the most common consumer proposal terms. The exact results may vary depending on the actual interest rates of your debts and the exact status of your financial situation.

What is secured and unsecured debt?

Secured Debt is any loan you have applied for where the lender can seize the asset if not paid, like a Mortgage or car loan.

Unsecured Debt is any loan you have received where the lender has no right to your assets, for example items purchased on a credit card, personal loan, or payday loan, cannot be seized if you are unable to make payments. A Consumer Proposal is designed to help people with this type of unsecured debt.

To qualify for a Consumer Proposal in Ontario:

Once your Consumer Proposal has been filed by your Trustee, your unsecured creditors will look it over and decide whether or not to accept the offer. If the majority of creditors vote to accept your Proposal, and the Court approves it, your Consumer Proposal will then go into effect. If your Proposal is rejected, you will be able to work with your Trustee to revise and/or consider a counter offer for your Proposal or consider other options such as Bankruptcy.

What are the benefits of a consumer proposal?

Here is a comparison of what someone with $50,000 of debt may pay back after filing for a consumer proposal, versus a debt consolidation loan or trying to pay it back on their own.

Consumer Proposal (Total amount paid to creditors)
Pay it back on your own (Total amount paid to creditors with additional interest of +$25,360)
Debt Consolidation Loan (Total amount paid to creditors)

Consumer proposal VS Debt consolidation loans

Many people find that a consumer proposal is a better option for debt relief than a debt consolidation loan. A consumer proposal allows you to pay back a smaller, reduced portion of your total debt and completely eliminates your high – interest payments.

A consumer proposal is a legally binding agreement that will protect you from creditors, stop collections calls, wage garnishments, and allows you to keep your assets. A debt consolidation loan does not offer this protection and can still leave you exposed to collection call harassment and legal action.

We work with your budget to structure payments based on what you can afford. Take the time to learn about your options and then decide if this is the direction you want to take. You are under no obligation to sign anything after your free consultation. Our goal is to help take away your stress, not give you more.

The Truth About High-Interest Loans VS. Consumer Proposals & Bankruptcy

Third-party lenders often market high-interest debt consolidation loans like installment loans as easy money. However, what they don’t tell you is that this “easy money” is hard to pay back and can result in a debt spiral that is even harder to get out of. 

Many people perceive high-interest debt consolidation loans as a quick, cheaper alternative to government regulated, debt relief programs like consumer proposals or bankruptcy. In reality, these loans end up costing people far more than what they currently owe.

While the concept of getting a high-interest consolidation loan to pay off debt quickly may seem like a good idea, it’s a short-term band-aid solution with long-term adverse effects. After all, there is a lot that third party lenders won’t tell you.

Examples of High Interest Loans:

The average interest rate on credit cards in Canada is 19%. The Canadian Government law is that lenders are not legally permitted to charge interest rates that exceed 60%. There are various types of non-bank loans, all of which have high-interest rates:

  • Payday loans*
  • Installment loans
  • Car title loans
  • Rent-to-own products


*Payday loans are exempt from the 60% interest rate limitation, therefore the annual interest rate on a payday loan is close to 400% or higher if you miss payments.

Loan AmountMonthly PaymentInterest RateTotal Cost
(Over 5 years)
Total Interest
(Over 5 years)

*Interest rates can fluctuate based on lender.

Consumer Proposal Process

Consumer Proposals in Ontario can only legally be filed and administered by a licensed Insolvency Trustee. By working with a Trustee, you will be able to determine if a Consumer Proposal is in your best interest. We offer a free initial consultation, where your finances will be reviewed in detail, and all of your debt removal options will be explored.

How It Works:

Once a consumer Proposal is determined to be your best debt solution you then work together with your Licensed Insolvency Trustee, to develop a Proposal that is acceptable to both you and your unsecured creditors.

The Trustee will then file your Proposal. The filing of your Proposal will require your unsecured creditors to stop any legal actions, wage garnishees, and collections against you. At this point, interest on unsecured debts stops accumulating. Filling will also mean that you will stop making any direct payments to your unsecured creditors.

The Trustee will then submit the Consumer Proposal and a report of your financial situation (including the reasons for your financial problems) to your creditors for approval. Your creditors then have 45 days to accept or reject your Proposal. Based on reports from your Trustee and the decision of your creditors, your Proposal is deemed accepted if no objection or request for a meeting is received from your creditors. Further, after 15 days from creditor approval, it is considered accepted by the Court.

If your Consumer Proposal is accepted, you will:

a. Make the required debt payments as agreed upon to the Trustee who will distribute the funds

b. Attend two financial counseling sessions

c. Report any changes to your address or telephone contact information

d. Keep your assets (as long as you make the required payments to your secured creditors)

e. Accept that your credit record will now contain the details of your Consumer Proposal. The Proposal will remain on your credit history for a period of three years from the date you have completed the Proposal in full and have been legally released from the debts it covers.

If your Consumer Proposal is not accepted, you may:

a. Resubmit your Proposal after having made reasonable changes
b. Review your situation to see if you have any other options of paying your debts
c. File for bankruptcy

Now that your proposal is accepted, how does it end?

a. If you complete and fulfill all of the conditions of your Consumer Proposal, you will be legally released from the debts covered in your Proposal.
b. If you fail to meet the conditions of your Consumer Proposal (specifically, if you miss three months of payments without filing an Amendment to your Proposal) the Proposal will be deemed annulled. Your creditors will be able to take all necessary legal actions to collect the debts you owe them.

Consumer Proposal FAQ

The difference between bankruptcy versus consumer proposals is that bankruptcy requires you to surrender your assets to repay your debts. A proposal, however, allows an individual to make an agreement with creditors on debt repayment terms. If you are unsure whether a Proposal or bankruptcy is best for you, we can help advise you on the best option for your debt situation.

A Consumer Proposal covers all of your unsecured debts. That means credit card debt, unpaid utility bills, payday loans, and even money owed to the Canada Revenue Agency. The Proposal is for debts under $250,000 (not including your mortgage). If you owe more than$250,000, you may be eligible for a Division 1 Proposal.

  • You do not have to declare Bankruptcy.
  • You will be able to keep your assets (as long as you continue to make payments on your secured loans if applicable).
  • Your unsecured creditors will have to stop all of their collection actions against you.
  • Any garnishees on your wages and or bank accounts will be stopped.
  • You will be able to pay back your unsecured creditors at reduced amounts based on your actual ability to pay at the time the Proposal is filed.
  • Interest and penalties stop accumulating when the Proposal is filed.

A Consumer Proposal does not usually include the sale or disbursement of assets. If you have a mortgage on your house, you will have to continue making your payments to keep your house. The same goes for your car loans or any secured loans. Secured debts, such as mortgages on homes and car loans, are not covered by the Consumer Proposal.

The time needed for filing a consumer proposal will be dependent on your timeline of meeting a Licensed Insolvency Trustee, providing all of the required information to prepare the proposal and signing the proposal.

The maximum amount of time that Consumer Proposals can last is 5 years (60 months),however, Proposals can be set up for any number of months. The following time frames are the most common:

  • 3 years (36 months)
  • 4 years (48 months)
  • 5 years (60 months)

In addition, you can also make a lump sum proposal to your creditors. This can be enticing for your creditors as they can recoup part of their funds in an expedited time frame and have it wrapped up quickly. We can provide more information in this regard once we have met with you and assessed your situation. Lump sums can be paid in full upon acceptance; there are no monthly payment terms. Proposals can prove to be a flexible way for you to settle your debt. We can prepare a proposal that can meet your budget and your financial situation.

People often want to pay off their proposal sooner rather than later because it remains on your credit history for three years. That said, there is no interest costs involved in paying the proposal over the full term. Taking out a loan to pay off the proposal, on the other hand, will require you to pay interest over time. This means that, with a loan, you will actually spend more to pay off your debts.

You will need to speak to your Trustee regarding your unique situation.

Your Proposal cost will depend on factors such as your monthly budget and the value of your estate. Speak with your Trustee to get specifics on your situation.

If you have kept your mortgage payments up to date, can prove that you will be able to promptly make mortgage payments in the future, and meet your lending institution’s requirements, you should be able to qualify for a renewal. You will need to discuss this with your lending institution.

If you are behind three months of your payments on your Proposal and do not file an Amendment to your Proposal, your Proposal will be deemed annulled and your Proposal will no longer be a legally binding agreement. Your creditors will be free to take legal action against you for the full amount of the debt you owe them. You may have to file for Bankruptcy if you default on your Proposal and your Trustee will be able to advise you on this.

This would depend on the amount of debt. If it proves to be nominal, your proposal may continue as offered. However, if the amount of the debt you forgot is significant, you may be required to increase your proposal payment. Your Trustee will advise you of any necessary action.

That is something that can only be determined by you and a Trustee after reviewing the details of your financial situation.

We will help you review and understand your current financial situation and we will carefully explain and assist you in evaluating your options.  Once you understand your financial situation and understand the options available, you will then be able to decide if a consumer proposal is right for you.

Once you complete your Consumer Proposal, you will be released from paying most, if not all the unsecured debt covered in your Proposal. Normally, the amount of debt you can afford to repay in a Proposal is less than the actual amount of debt owed, however, in some scenarios payment of your full debt may be required, albeit with no interest and monthly payments you can afford.

At David Sklar & Associates, our team is here to help you every step of the way. We not only explain every option available to you, we also give you the tools to help rebuild your wealth. Speak to one of our licensed debt professionals today. Let us show you there is hope and a way to financial freedom! The calls will stop, the stress will disappear, and you can start focusing on your future!