Consumer Proposal

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 can legally help you reach an agreement with your creditors.

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David Sklar & Associates Inc.
Based on 686 reviews
stefania cicchino
13:54 27 Mar 21
We worked with Jackie. She is very professional and very caring. She is quick to respond and really cares about helping the people in front of her. I went with my uncle, who was scared of the whole process and mentally delayed. Jackie took her time with us and made him feel at ease. She carefully explained things multiple times and was very encouraging. She was a shining light in a difficult process.
Christine Lowe
16:44 12 Mar 21
Jackie is very professional, kind, supportive and super helpful. She was able to help me get back on track. Great service and I will definitely recommend them.
Belen Trava
19:01 11 Mar 21
Jackie provided me excellent service, was very helpful, and she made feel very secured and she listened to all my concerns.i was speechless with excellent service.
nicole lowartz
17:02 11 Mar 21
Had a great experience and successful result working with Carol at David Sklar & Associates! I was well informed and received great guidance after just the first conversation! She handled everything and helped me build a budget that is realistic and that i can really stick to! I highly recommend Carol and her team at David Sklar. Give them a call!
02:07 03 Mar 21
I've used these services twice and they have always been understanding, supportive and informative. They give you hope when you feel like there is none. I've referred multiple people to them and they've all had the same professional experiences. Jackie Stanley was amazing and got the job done. Thank you!
Kristine San Gabriel
15:14 02 Mar 21
Dealing with any kind of debt can be stressful. Jackie is amazing! Professional, warm and extremely helpful to say the least! She made sure to answer all of our questions, address any concerns and made this whole process as smooth as possible.
Clayton Surujbally
17:09 18 Feb 21
Working with David Sklar has been an easy and detailed process. I am especially thankful for the personal services provided by Jackie Stanley as she has been very informative and always ready to answer any questions or concerns in a timely manner. I highly suggest working with Jackie if the opportunity presents itself.
Chris Thompson
17:11 07 Feb 21
On February 2 l made the somber driveTo David Sklar and associates.I had known this location from having drovePast it many times over the years.I made a appointment using the phone numberOn their door in Pickering, OntLater that day l had a consultation withTrina Powell.Immediately upon meeting with her l wasBecomming more relaxed with the proceedings.Trina, was very down to earth, and very professional.We all have our calling, l can only gather sheHas found hers, and she is very good at herJob, and career.I met with her again two days later but on thisVisit l felt more relaxed, and self assured of myDecisions, having already met with Trina.Thank you! Hat's off to you.I also had a phone zoom call with MarkTo whom as well was very easy, and comfortableTo talk to,Thank you, Mark.The team at David Sklar and associatesShould take great pride, and comfort when theyHelp people, like me and probably so many others.Thank you.
Desiree Balkaran
17:09 07 Feb 21
I have dealt with this company before many years ago when I did my bankruptcy , and found to be very trustworthy, professional, and right at ease. No judgement, very understanding and very supportive. So of course would come to then again when this time did the debt consolidation. The staff is friendly and goes over all the details with you and answers all your questions so you know exactly what to expect and make an informative decisison. I aslo like how if I had any questions could leave a message or email the company and how promptly they answer me back. Thank you David Sklar & Associates for getting me back on the right track and living a life of debt free again. I have my freedom back thank you for all your help and support. Amen 🙏
Elizabeth Thomas
09:18 04 Feb 21
I am so grateful to Rhoda Lewis for an amazing opportunity to start fresh, she is very knowledgeable, professional and very friendly. I felt so comfortable from the moment I walked into her office, I definitely would recommend Rhoda to anyone who is looking for help. I love and appreciate you very much for helping me. After all these years I still kept in touch with you via email just to say thank you. Thank you again so very much and continued blessings.
Andrei Podeanu
02:09 01 Feb 21
Jackie Stanley will take you step by step in explaining the process professionally, answering all the question I had over the telephone or e-mail. We are very satisfied and grateful for her work and effort. Dan Podeanu
Daniel Domingues
22:19 23 Jan 21
Ashley Carter was very nice to me and professional and she helped me with my issue and she answer my questions in email. She helped me a lot and she gave me less stress.
1 blaze
18:36 21 Jan 21
Jackie Stanley take you step by step in explaining the process professionally, replying on our every question over the telephone or e-mail. We are very satisfied and grateful for her work and effort.
Tree Broker
14:33 20 Jan 21
Jackie and the team at David Sklar and Associates took my very stressful situation and made me feel at ease. I was treated with respect and understanding from the start of my process right through to the end. Prompt email and phone responses made it feel like I was at the top of their priority list.Jackie and the team at David Sklar are the best in the business. I would highly recommend using their services.
Jeremy Y
14:04 20 Jan 21
Has helped me put to gather all my financial debt and find a reasonable offer and deal in making payments towards all my debts as one. Has been patient and kind service one on one. A big thanks to Jackie for helping guide me through my process!
02:09 20 Jan 21
Jackie is an amazing person, she takes her time to make sure you understand everything. Every question I had she was always a email or text away with a quick response. Thank you again
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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.

Debt Calculator

A Consumer Proposal, can reduce what you owe BY UP TO 80%

* Calculations are made over a 5 year period

Your Options
What you pay
Consumer Proposal Learn more
$5,300 (interest 0%)
Do Nothing
$15,564 (interest 19%)
Debt Consolidation Loan Learn more
$19,411 (interest 30%)

*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!