Consumer Proposal in Ontario

A consumer proposal is the #1 alternative to personal bankruptcy in Ontario
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What is a consumer proposal?

Believe it or not, you can get out of debt without declaring personal bankruptcy or resorting to costly debt consolidation loans with a consumer proposal

The government of Canada offers a little-known debt-relief program, called a consumer proposal in Ontario. By filing a consumer proposal, you can reduce your debt by up to 80% through a negotiated settlement with your creditors without interest or penalties. 

Why work with a Licensed Insolvency Trustee?

Only a Licensed Insolvency Trustee (LIT) has the knowledge, training, and authority to file a consumer proposal in Ontario on your behalf. At David Sklar & Associates, we have a dedicated and passionate team of LITs and administrators who can guide you through the whole process, helping you to reduce as much of your debt as possible.

If you’re struggling to keep up with your debt payments, a consumer proposal can give you the breathing room to get your finances back on track.  Our LITs can help you get there. Contact us today to learn if a consumer proposal is the right debt relief solution for you!

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David Sklar explains the benefits of a consumer proposal in Ontario

Our Canadian debt relief solution can help you reduce your debt by up to 80%. A consumer proposal is the #1 alternative to personal bankruptcy.

With the help of a Licensed Insolvency Trustee, you can reach an agreement with your creditors to repay a fraction of the debt you owe.

What debts can you include in a consumer proposal?

A consumer proposal helps deal specifically with unsecured debtwhich includes the following:

*Student debt can only be included in a consumer proposal if seven years have passed since you’ve graduated

You cannot include secured debts in a consumer proposal, which is debt backed by an asset you own. A mortgage, car loan, home equity loan, or home equity line of credit (HELOC) don’t qualify for discharge through a consumer proposal. Child support, alimony, and fines also are excluded.

For many people, it’s the steep, double-digit interest rates found on credit cards, lines of credit, and similar unsecured loans that give them trouble. In fact, lenders can legally charge interest rates as high as 60% for loans in Ontario! And the rates can be even more excessive for payday loans.

By drastically reducing your high-interest unsecured debts, you’ll have more room in your budget to keep up with your mortgage and car loan payments. 

How does a consumer proposal work?

Here's an example of how a Consumer Proposal works in Ontario, Imagine you owe:


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Your Debts include the following:

During your first consultation, we’ll determine how much of your total unsecured debt you can repay based on your current financial situation. In this scenario, let’s assume the calculations show that you can repay $25,000 while still covering your rent, mortgage, and other living expenses.

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Your Licensed Insolvency Trustee will then take care of all the formal paperwork and present your consumer proposal settlement of $25,000 to the creditors. Most creditors would rather receive a portion of what you owe, rather than have you declare personal bankruptcy where they receive much less, or possibly nothing.

Once your consumer proposal is accepted by your creditors, the agreement is legally binding. You’ll no longer be subject to harassing collection calls and are shielded from lawsuits from creditors. Any wage garnishment orders in effect will grind to a halt as well.!

Your $100,000 debt is reduced to:


Step 3: Start paying down your debt

Once your Consumer Proposal is accepted you will make one low monthly payment directly to David Sklar & Associates, consolidating all your debt, without interest and without penalties.

Payments are made monthly over a maximum of five years. You also have the option to repay the total amount at any time. We then disburse the funds to your creditors.

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So... where did the rest of the debt go?

The truth of the matter is that the Canadian government would rather have you claim a consumer proposal in Ontario than a bankruptcy, and your creditors would rather get 20% of your debt than nothing (which is what they would receive if you claimed bankruptcy).

The remaining debt is simply forgiven.

As long as a Licensed Insolvency Trustee manages your consumer proposal, there’s no catch. You don’t have to worry about hidden fees, penalties, or other obligations. Provided you qualify, you have the right, as a Canadian citizen, to use a consumer proposal to help you free yourself from crippling debt.

debt calculator

Find out how much you can save with our
Consumer Proposal Debt Calculator

Use the slider below to tell us how much you owe and we will show you how much you can save!

*This calculator simply provides an estimate of the total savings you could receive filing a consumer proposal. Actual results may vary as each financial situation is unique.  Your actual payments will be based on your income, assets, and debts.

*Do Not Include Mortgage or Car Loan Debt.

$10,000 $250,000

With a consumer proposal at 0% interest, you will only have to pay back:

$3,480/$58 per month

*This calculator is for demonstration purposes only. Your results may vary based on your unique financial situation.

Advantages of a Consumer Proposal in Ontario

Do you qualify for a consumer proposal in Ontario?

Here are the requirements to file a consumer proposal in Ontario:

Consumer Proposal vs. Personal Bankruptcy

Filing a consumer proposal in Ontario or declaring personal bankruptcy will help you to clear your debts and protect you from creditors but there are some important differences to be aware of. 

One major advantage of a consumer proposal is that you will not lose any of your assets and you are not required to surrender anything.

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Consumer Proposal

Personal Bankruptcy

Total debt must be less than $250,000

No limit to size of debt

Only available to individuals

Available to individuals or companies

You keep your Assets: Home, Car, RRSP’s, RESP’s, & Investments

Surrender your assets (Exemptions)

Keep Your Tax refund

Calendar year’s tax refunds go to creditors

Payments are structured based on what you can afford

Payments based on household income and value of assets

The payment is flexible you can pay everything immediately (lump sum), or stretch your payments over a maximum of 5 years the choice is yours

The payment is NOT flexible, first bankruptcy 9-21 months, second-time bankruptcy 24-36 months

Getting into debt is easy. Getting out is a different story.

But it's still possible!

Our video reviews

We take pride in what we do and hearing how we’ve madea positive change in our customer’s lives is the greatest reward we can receive.

We are here for you when you’re ready to live your best life debt free!

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What our clients are saying.

Based on 830 reviews
Luc Valade
Very processional and understanding of my situation. Thanks to all your team.
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!
Ray Barkley
They made a difficult situation, easy thank you.
fukinwith doug
I had a great experience with Christine from David Sklar & associates. Very professional, and easy to get through. Thank you
Adrian Downey
Great customer service and a smooth process to get your finances on track. Informative and thorough.
P Bains
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!
A.L Thompson-Lawrence
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.
Tamas Wint
I had my first meeting with Jennifer, she was really understanding and extremely helpful, and got everything done in a timely manner.
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We are David Sklar

Our team of Licensed Insolvency Trustees in Ontario can help you get out of debt and in control of your own financial future. We’ve helped thousands of people and we can help you too. 

We know this is stressful, but you're not alone.

It’s going to be okay.
Book your free consultation today. We’ll do the rest.

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Call 1-844-962-9200 or fill out the form below. We’ll do the rest.

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