Consumer Proposal 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 in Ontario.

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!

Richard Sklar - Licensed Insolvency Trustee

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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:


line of credit debt can be included in a personal bankruptcy in Ontario
student loans debt can be included in a personal bankruptcy in Ontario
Credit card debt can be included in a personal bankruptcy in Ontario

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 made a 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 1126 reviews
Ray Paton
Very nice people to deal with
Chan Abdulla
My visit at David Sklar & Association was great. I met Samycha and she was amazing and treated me with compassion and was never judge by anyone there at the office. I will recommend anyone that is looking for a new start in life again to book an appointment at David Sklar & Associate's. All the staff there is very polite and treat you like you are special.
Extremely professional, empathetic, honest and down to earth.I felt as those I had previously known Samycha for years. Her ability to relate, understand and assist with my situation was comforting. Very happy with their services.
Simone Foster
The company as a whole is fantastic. If you’re not ready or serious they won’t harass you with cold calls but when you are ready they will help you with a realistic plan. Everyone I’ve worked with is efficient and knows what they’re doing. Just like everyone in the comments I have to praise Cori who I would describe to people like the auntie who knows best lol thank you for everything.
Ricardo Villa
Jerry Janiec and Hernee Templonuevo have been very helpful from beginning to end. Hernee is knowledgeable of what it is that is required of you regarding pertinent documents that they need. Jerry provides a clean picture of your options and makes recommendation that is suited with your current situation. Thank you, both.
Trish Gee
David Sklar & Associates… they work for you. They do everything they can to help you get out of debt. They lower your debt, then help you rebuild your credit. They care about helping Canadians get out of debt.I’m in a fair amount of debt, and they almost cut my debt in half for me, and in just five years, I will be debt-free, because of them. I’ve been sick because of the amount of debt looming over my head. After my first meeting with Grace, I feel so much better. Grace set up a Consumer Proposal to help me get out of my debt, and I can see an end to my debt. My mental health has gotten so much better since that first meeting, and I owe it all to Grace, and everyone at David Sklar & Associates. Thank you, all!
ronald hall
Trina was the one who handled my case. She was understand, patient and professional.
Chris B
Very professional and thorough
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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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