Consumer Proposal Benefits

A consumer proposal can give you the fresh start you deserve.
shirley sklar explaining consumer proposal benefits

It's easier than you think

Canadians are carrying a tremendous amount of debt today and most of that debt can be substantially reduced by up to 80% when you file a Consumer proposal. The remaining debt is repaid based on what you can afford without interest. The benefits of a Consumer Proposal far outway the impact of personal bankruptcy.

Types of debts a Consumer Proposal can include:

A consumer proposal
is the #1 alternative
to personal bankruptcy

Benefits of filing Consumer Proposal In Ontario

In this video, a Licensed Insolvency Trustee explains to Mary and Paul that a consumer proposal might be the way to resolve their debts. The trustee tells them how a consumer proposal is different from bankruptcy and what they need to do.

You don’t need to pay anything to speak to an LIT and no one else needs to represent you.

Consumer proposal benefits include:

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1. Protection from creditors

When the consumer proposal process begins, creditors are legally required to stop calling you and will not be able to garnish your wages.

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2. Keep your assets

Unlike personal bankruptcy, you will not be required to surrender your assets when you file a consumer proposal.

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3. One monthly payment

All your debts are consolidated into one low monthly payment, with no interest and no penalties.

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4. Credit counselling

As part of the consumer proposal process, you’ll receive two free credit counselling sessions that provide you the knowledge to help you to rebuild your credit and end the stressful debt cycle.

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5. Freedom from your DEBT

Say goodbye to unmanageable debt. Many of our clients reduce their monthly debt payments by up to 80%.

A consumer proposal can save you thousands of dollars

If you have $50,000 of debt, you have a few options of how you could choose to pay it back.

Below shows examples of monthly payments over the course of five years. 

debt relief consumer proposal benefits comparison chart

If you’re scratching your head and wondering how it’s possible to pay only $291 per month for five years and fully pay off a $50,000 debt, you’re not alone.

It doesn’t add up because in most cases a consumer proposal can reduce your debt by 70% – 80%!

More Canadians choose a consumer proposal over filing personal bankruptcy and here's why:

Consumer Proposal

Personal Bankruptcy

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Keep your Assests

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Lower Monthly Payments

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Avoid Bankruptcy

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Avoid Surplus Income

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Protection from creditors

Differences to be aware of:

If you have any additional questions about consumer proposal vs personal bankruptcy, we are just a phone call away.

Who do I talk to about a consumer proposal?

Only a Licensed Insolvency Trustee is legally allowed to file a consumer proposal on your behalf. Trustees receive their licenses from the Superintendent of Bankruptcy.

Referrals are not required to speak with a Licensed Insolvency Trustee. Be cautious of debt consultants claiming to get you a better deal. Your creditors do not like working with debt consultants, and this relationship will rarely produce a better deal for you.

david sklar debt relief consumer proposal benefits

Consumer Proposal risks:

Consumer proposals are common in Canada and helpful for many people, but they are not always the right option for everyone. We’ll share some downsides to filing a consumer proposal.

With a consumer proposal, you are lowering your monthly payment and paying your creditors their recovery over a longer period of time overall. This means that a consumer proposal often takes longer to complete than filing for bankruptcy. If your situation is very time sensitive, a proposal may not be a good option for you.

If your situation improves financially, you do have the option to pay off a consumer proposal early.

For a maximum of six years from the date of filing, an R7 note will stay on your credit report.

You can rebuild your credit. Most people are still able to get a secured credit card during the consumer proposal process.

Your creditors may have higher payout expectations, and expect to receive slightly more than they would receive in bankruptcy. It’s true that 99% of consumer proposals are accepted, but some require negotiation. 

This goes for things like payments for family law support, debts that are secured, fines and tickets, debts due to fraud, and, if it has been seven years or more since you finished school, student loans. These debts are not eligible for inclusion in a consumer proposal.

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

But it's still possible!

Did you know there is a Debt Program federally regulated by the Canadian Government, designed to help citizens avoid claiming bankruptcy? This amazing program can only be administered by a Licensed Insolvency Trustee (LIT).

If you’re struggling to make your payments every month and creditors won’t stop calling, we can help.

What our clients are saying.

Based on 774 reviews
Jerry was professional and was easy to deal with
00:09 11/29/22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
19:53 11/17/22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
12:21 11/16/22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
01:59 11/15/22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
19:28 11/14/22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
14:31 11/14/22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
20:18 11/13/22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
17:59 11/06/22
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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.