Consumer Proposal Canada

What is a Consumer Proposal?

A consumer proposal is an alternative to 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 ontario

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 starte

Consumer Proposal Canada
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David Sklar & Associates Inc.
Based on 713 reviews
Amanda Frappier
01:18 19 Nov 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.
Alex Taylor
22:03 17 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.
Giani Kokolakis
18:45 25 Oct 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.
Wajay Awan
07:29 12 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.
Bruce Locke
16:13 08 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.
Denise Simpson
15:17 09 Sep 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:)
Alex Lamparter
13:07 03 Sep 21
My experience with Ashley Carter at David Sklar and Associates was very pleasant and professional. The process was made easy by Ashley with her help in answering my questions and concerns.
Nicole Minister
17:43 02 Sep 21
Ashley she was extremely helpful,super friendly and understanding my situation. I am very please for the service I received and I will recommend this Company to anyone in need of consolidating. Thanks so so much.
rr 28
12:44 21 Aug 21
I finally pulled the trigger and seek help from this team. I tried to pay my debt in the way it should be until the pandemic made it even worst and couldn't keep up with my payments anymore. Jackie is an amazing person, I told her the problem, she gave me the solution and gave me a variety of options and walked me through the process. That simple. Thank you so much.
Vi Smith
18:09 13 Aug 21
Dealing with Jackie made the process so much more comfortable. From my first phone call with her I never felt like I was being looked down on. Jackie made this as easy as being in this situation could be.
fidel Cruz
14:35 24 Jun 21
I have to say, I never thought that such process could have been so quick and easy. But then again I guess that's what happens when you deal with professionals. I dealt personally with Rodha Lewis, who was very attentive to my personal issue and very professional on her work. She's someone who will actually take her take and talk to you about the process and help you as much as she can. I am very grateful to her and very appreciative of her work. I couldn't have dealt with someone better. Thank you very much Rodha for your work.
Maria Curbelo
13:43 23 Jun 21
I just completed my proposal and I am thrilled. Rhoda was delightful to work with. She helped me end the phone calls and start rebuilding my life. I highly recommend the services here and will always recommend to anyone who asks. Definitely seek out their services if you are in need of some help.
Jelena Petrovic
18:06 20 Jun 21
Very professional and fast service! Also, personable!.. they don't treat you like a number, but like a person.From the time I first contacted them, until I was set up there has been not more than 7 days.I dealt with Jackie, she was great!
Mark Simmonds
21:50 16 Jun 21
I would just like to say thank you to David Sklar & associates for helping me out in this difficult time I was in way over my head, I was introduced to Jackie Stanley, at that moment things got better the calls stop. Jackie was so professional helpful, trusting answered all my calls all my Text, and emails professionally and respectful!! I can’t believe it, and now I’m gonna build my credit rating back up and have my life back Thank You, Jackie Stanley at David Sklar& associates, for doing an outstanding Job!!!!
Richelle Barriault
17:57 16 Jun 21
I am not very good at putting words together especially when your speechless for all the help from such a friendly happy non judgemental team. From being financially stressed and depression hitting all at once I connected with Jackie Stanley💯❤❤ from David Sklar team in a whole other level,she is an absolutely joy to deal with and very informative let me know there is light at the end of the tunnel.. despite my struggle the amazing lady Jackie Stanley was able to put a smile on my face and make me laugh super happy and grateful 🙏I was able to connect with her from David Sklar &Associates team I 💯 percent recommend her (Jackie Stanley) and will continue to recommend her. To any one looking to get out of debt or have any questions belive me when I say you will not be disappointed with Jackie she's such a great person and I'm lucky to have been able to recieve the help and guidance from such a wonderful person and you will be also...look no further no where but up from here ...Thank you So so much Jackie much appreciated
Grace Muller
17:55 25 May 21
I must admit that I am so glad I called! I spoke to Rhoda Lewis who right away made me feel at ease. She's so caring and supportive I highly recommend her. Thanks to her my life is now on track! Thank you David Skylar & Associates Inc!
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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!