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 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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Book your free consultation.

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

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