Consumer Proposal FAQ

Common questions about consumer proposals

What is a consumer proposal?

A consumer proposal allows you to consolidate your unsecured debts and offer to pay your creditors a smaller percentage of what you owe them. It’s a legal agreement you make with the help of a Licensed Insolvency Trustee and is a federally regulated program. A consumer proposal lets you keep your assets, freezes interest charges, stops collection calls, and shields you from lawsuits initiated by creditors. 

Is a consumer proposal the right debt relief option for you?

If you’re struggling to keep up with debt payments, a consumer proposal is an excellent debt relief option to pursue.

Do you earn a steady income and can afford to repay a reasonable portion of your unsecured debts? If so, a consumer proposal can work to your advantage. With much lighter debt payments to make, you’ll no longer face tough financial decisions like choosing between paying your credit card balance and electricity bill. You’ll also have more money available for life-enriching activities, like that family vacation you keep postponing or a down payment for your dream home.

However, suppose your debt obligations are exceptionally high, and you lack the means to repay even a small portion of your debts. In that case, bankruptcy may be a more suitable option than a consumer proposal.

Need more advice to determine if a consumer proposal is right for you? Then don’t hesitate to contact us to book a free, no-obligation consultation with one of our Licensed Insolvency Trustees. They can review your financial situation and recommend the best debt relief solution based on your circumstances.

We understand dealing with debt can be stressful and frustrating, even demoralizing. But, more importantly, we also understand how to guide individuals like yourself out of these seemingly hopeless situations and help you attain financial freedom. We’ve helped thousands of people from all walks of life do just that for over 20 years. We can help you, too!

Consumer Proposal FAQ

When you book a free consultation with one of our Licensed Insolvency Trustees, we’ll discuss all your debt-relief options and determine if a consumer proposal is right for you. You probably qualify for a consumer proposal if you’re a Canadian resident or citizen and owe less than $250,000, excluding mortgage debts.

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) aspect of filing a consumer proposal in Canada. Over the course of two mandatory sessions, you’ll learn valuable skills to help you rebuild your credit and prevent future debt problems.

Once 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 aren’t allowed to contact you – all communication must go through David Sklar & Associates. Should they fail to respond within 45 days, the law assumes they’ve accepted the terms of the proposal.

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. 

If you’re struggling with your student loan debt and it’s been seven years or more since you’ve been a student, you can eliminate it  by filing a consumer proposal. This “seven-year rule” applies only to government-issued student loans. Private student loans are automatically eligible for inclusion in a consumer proposal.

Learn more about how we can help you find student loan debt relief with a consumer proposal and 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 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 831 reviews
Melissa McAllister
I worked primarily with Christine, who was very friendly and outgoing. She was quick to help me, and explained everything I needed to know very well. She's quick to answer any questions I may have as well. The other members I spoke with were also very kind and jovial, and were happy to help me with anything they could. They made sure my proposal fit within my budget, and got everything going very quickly. I was happy to work with them, and would highly recommend their very friendly service!
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.
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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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