Consumer Proposal FAQ

When you book a free consultation with one of our Licensed Insolvency Trustees, we’ll discuss all of the debt-relief options that are available to you and whether or not a consumer proposal is the right one for your unique situation. If you are a Canadian resident or citizen and owe less than $250,000, you probably qualify for a consumer proposal. 

Canadians are carrying a tremendous amount of debt today and most can be included in a consumer proposal, which will substantially reduce the amount you owe and how much you pay each month. These types of debt include credit card debt, CRA debt, student loan debt, personal loans, payday loans, lines of credit, etc.  

Inflation in Canada is on an upward trend—the cost of everything continues to rise. If your household bills have been increasing, stress around crushing debt repayment is likely growing as well. While a consumer proposal will not reduce your regular ongoing household expenses, such as groceries and utilities, it may reduce your debt payments (loans and credit cards) by up to 80%. And those are the payments that tend to come with very high interest. Most of our clients experience a great deal of relief after filing a consumer proposal as the family budget becomes much more manageable. 

Credit counselling is an important (and non-negotiable condition) of filing a consumer proposal in Canada. You will learn how to begin to rebuild your credit, and how to prevent accruing more consumer debt in the future. 

After your licensed Insolvency Trustee notifies your creditors that a consumer proposal has been filed, they have 45 days to respond.   During the approval period, creditors are not permitted to contact you, all communication must go through David Sklar & Associates.

Most forms of debt may be included in a consumer proposal except for your mortgage and car loan. This means you will continue to make those payments as normal. You will not be required to surrender assets when you file a consumer proposal. 

Your credit report is a history of your relationship with your creditors and your debts.  This history is used by the creditors to gauge what level of risk there is in advancing new credit to you.  The combination of the history, the amount of credit you hold and the level of risk is what allows each creditor to generate your “Credit Score”.  The higher your score, the better the chances of receiving new credit at lower rates.

If you are in need of a Consumer Proposal or a Bankruptcy, your credit history is likely to have already been affected to varying degrees as a result of missed payments, collection actions or simply the total amount of credit that you have available, even if you are not using it.

Learn more about consumer proposal and credit ratings

Learn how to improve your credit rating

Depending on which comes sooner, either 3 years after you finish making payments to complete your consumer proposal or 6 years after filing. 

Student loan debt has long been a problem for Canadians. Add in a pandemic that continues to cause massive uncertainty around employment at a time when inflation rates are soaring we have a perfect storm for debt stress. 

If you’re struggling with your student loan debt and it’s been seven years or more since you’ve been a student, we have some good news. It is possible to say goodbye to that unmanageable monthly bill and the robotic collection calls that go with it. 

There are two debt relief options we suggest for taking control of your student loan debt situation: filing a consumer proposal or declaring personal bankruptcy. 

As tempted as you might be to apply for a debt consolidation loan to eliminate your student loan debt, we strongly recommend you explore other options. A consumer proposal is a less expensive form of debt consolidation and it’s interest-free. Ironically, many of our clients come to us for debt relief from their debt consolidation loans! 

Learn more about how we can help you find student loan debt relief with a consumer proposal.

Learn more about how we can help you find student loan debt relief with a personal bankruptcy

Only you can decide if a consumer proposal is worth it for you, but we urge you to consider the facts! With a consumer proposal, you will have a manageable monthly payment based on your income, expenses, assets, and what you can afford. Ultimately, a consumer proposal is a fair debt-relief option for all parties while giving you a fresh financial start. 

Our favourite question of all?

“Why didn’t I do this years ago?!” 

Book your free consultation today! 

Learn about some of the consumer proposal experiences of our clients:

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.