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 751 reviews
I made a review in 2017 i will again make a review now 2022. Thank you Jackie for everything that you do for me. Forever thankful. I have paid everything already. On one spring day back in 2017 i was in a lot of stress, dealing with phone calls from the bank. A friend of mine told me to go to David Sklar’s office (its close to my apartment) as she is also paying hers( in another firm). So i did and i was glad i did. Thank you and God speed!
22:49 08/13/22
(From K.M)After a great deal of thought, that actually went on far too long and only created more hardship, I finally called David Sklar and Associates. They immediately set up a mutual time for an in person appointment. I had the greatest fortune to meet with Jerry Janiec!From the moment I met Jerry, I felt at ease and the weight I had been bearing began to lift.Jerry is very personable with a happy, kind, patient and gentle nature. He is very knowledgeable and extremely thorough in all of the information and options that were presented. Jerry was very supportive in the option I chose.I read other reviews on David Sklar and Associates and I whole heartedly agree. If you are struggling and it seems never ending, make the call to these people. I should have much, much sooner.Thank you so very much Jerry Janiec. You truly are a blessing.Sincerely, Karen M.
16:08 08/08/22
Great job. Bibi , marvel and many associated help us to serve the problem . Appreciate to your team David sklar .
15:26 08/05/22
Cori was kind and helpful, anyone interested in learning more about debt options would be fortunate to hear her insights and experience on the subject
13:55 07/26/22
Cori has been a great help in relieving stress caused by debt in my life, she has excellent knowledge in her line of work. Cori has a lot of patience and takes her time with her clients to make sure they understand. It has been a great pleasure working with Cori.
18:15 07/20/22
The service excellence I received was amazing. The staff at friendly and considerate and show empathy when dealing with such a difficult choice.
19:52 07/19/22
Caner uzun.. this place is full of professional lawyers all my debt problems are gone all I had to do is make an appointment go see them boom its that easy thank you all for your help
17:19 07/18/22
My mother introduced me to the company and I signed up and I spoke to Christine Sylver ... Let me tell you .... Christine Sylver is the best licensed debt counselor ever. She helped me from when we starting talking up until now and she's a great individual. I would recommend her and this company to anybody. I can't wait to have me debt cleared and start my life again.
20:21 07/06/22
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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.