Cost of a consumer proposal in Ontario

Your monthly payment is based on what you can afford to repay.
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What does a consumer proposal cost?

Many of our customers are concerned that filing a consumer proposal costs more than they can afford. We know you’re already under enough financial stress, so we work with you to see what you can afford to pay each month based on your budget. There are no surprises and no other fees to worry about.

Unlike bankruptcy, a consumer proposal doesn’t eliminate your unsecured debts entirely. However, it still works to discharge a significant portion of what you owe, leaving you with a much smaller amount to pay. Plus, you can avoid the negative repercussions that come with bankruptcy, including needing to surrender your assets.

For these reasons, a consumer proposal is an increasingly popular – and affordable – way to obtain debt relief in Ontario.

One Low Monthly Payment

Once your consumer proposal is accepted you will only have one low monthly payment that includes payments towards your debt and fees for the licensed insolvency trustee.  There are no additional costs or fees that you need to make aside from your monthly consumer proposal payment.

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How much does a consumer proposal cost?

Depending on your circumstances, filing a consumer proposal can reduce your debt by up to 80%.
Your Licensed Insolvency Trustee will help you determine how much you can afford to repay based on your current financial position. They’ll evaluate your income, assets, and household expenses to ensure your monthly payments are manageable.

For example, suppose you have total unsecured debt owing of $65,000. In that case, you could negotiate new payment terms where you repay only $22,000. Assuming your creditors agree to this proposal, your monthly payment over five years (the maximum allowed) would be $367.

How are your payment terms determined?

Your current financial standing, by far, has the most significant impact on the cost of your consumer proposal. Your Licensed Insolvency Trustee will review your income, assets, expenses, and the creditors to whom you owe money. Then, they’ll assist you in crafting a monthly payment plan suitable for your budget and one your creditors are likely to accept.

Once the majority of your creditors (based on the dollar value of your debt) accept the terms of your proposal, the payment plan becomes legally binding. You can then begin making payments to your Licensed Insolvency Trustee, who will distribute the funds to your creditors accordingly.

One low monthly payment – with no interest or penalties!

You’ll have a maximum of five years to repay your debt in full. No interest charges or penalties will accrue on your balance during the repayment period. You also can contribute a lump sum payment at any time to settle your remaining debt.

What happens if your financial circumstances change?

If your financial situation improves while completing your consumer proposal, you can increase your monthly payment amount to finish your proposal sooner.

Alternatively, let’s say your finances deteriorate, and your income suddenly dries up. In that case, you will need to assess whether this is a short-term issue or longer term. if it will be longer term, you will want to ensure that you do not fall into arrears on your payments as the third payment arrear will result in your consumer proposal being annulled. As a result, you’ll now be responsible for repaying your debts as they existed before you filed the proposal. Your creditors can also pursue legal action against you, including garnishing your wages.

Suppose you anticipate falling behind on your monthly payment for the third time. In that case, your Licensed Insolvency Trustee can help you negotiate new payment terms with your creditors. If accepted, you can resume your monthly payments under the revised terms.

Contact us today to find out what your monthly payment could be

In most insolvency cases we encounter, a consumer proposal is preferable to bankruptcy, as the monthly payment is typically more manageable and doesn’t require you to give up your assets. As long you present a fair and reasonable offer to your creditors, they’ll happily accept your consumer proposal. They’d much rather receive a portion of what you owe than risk losing everything should you file for bankruptcy.

Curious about how much a consumer proposal will cost you? Then book a free, no-obligation consultation with one of our Licensed Insolvency Trustees. We’ll assess your situation and help you create a payment plan to set you on the road to financial success.

Can I afford a consumer proposal?

One of the benefits of a consumer proposal is that we negotiate an amount that you can afford to pay, based on your debts and your income. We take into account all of your regular household expenses.

Consumer proposals are interest-free and there are no additional costs that you need to make aside from your monthly consumer proposal payment.

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!

$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.

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

But it's still possible!

Did you know there is a Canadian debt relief 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 957 reviews
Carolina Marroquin
I am very pleased with the experience with your company. Great customer service and very professional. They made me feel like dealing with caring and friendly people. Jackie is a sweet lady. All of them very helpful.
garfield wallace
I am very excited for the helpful service I receive from David sklar &Associates Inc ! My experience with coronation she is a professional and skill person! We'll done ✔ thank you very much, Gw
ray pat
Great and friendly staff. They went out of their way to help me with the process. David Sklar and Associates are more then professionals. Christine sylver helped me with every steps, everytime I asked for more help she was always there for me with a smile. Very professional and patient. I want to thank Christine Sylver for everything she did to help me through this process and by giving me a new start.
Penelope Mather
I was so nervous to go and then i met trina beautiful compassionate understanding trina how lucky for me what a professional thank you thank you
Marina Granado
It was easy to get everything started and I am happy that I choose you, thank you.
George Carvalho
I came in with a lot of anxietyChristine SylverHernee Templonuevogave me the confidence I needed
Robert Barnes
A great place to find out the best way to remove your debt. I discussed my problem with a with a fantastic lady who's named Grace. This lady showed me a couple of ways to lower my debt and I chose one. Thanks to Grace one day I will be out of debt, but until then my spending without cause has come to an end.To the staff and especially Grace of David Sklar and Associates thank you.Bob Barnesi will be one day out of debt
Verble Daniels
A wonderful experience with a very depressing financial situation.Cori is easy to talk to and understand, with what she is describing.
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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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