How to File a Consumer Proposal in Ontario

Simply book a meeting with us and we’ll do the rest!
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How do I file a consumer proposal? 

Wondering how to go about filing a consumer proposal in Ontario? It doesn’t take much effort on your part – simply book a meeting with us, and we’ll do the rest! We’ll assess your debt situation, file the necessary paperwork, negotiate a settlement with your creditors, and manage all the details.

Once your consumer proposal is up and running, you only have two obligations: make your monthly payments and attend two credit counselling sessions. It really is that easy!

What to expect from our supportive staff

Our business is built on exceptional customer service and exceeding expectations. We focus on finding the right solution for each customer who seeks our help in finding debt relief and rebuilding their finances.

We know your situation is unique, so we take the time to get to know your predicament and devise a plan tailored to your specific needs and goals.

We’re here for you when you’re ready to live your best life debt free!

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Steps for filing a consumer proposal in Ontario

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1. Contact one of our Licensed Insolvency Trustees

The first step is to arrange an appointment with one of our Licensed Insolvency Trustees to review your current financial situation and discuss your options. A Licensed Insolvency Trustee is the only professional in Canada with the authority and expertise to administer a consumer proposal on your behalf.

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2. Review your finances

Your Licensed Insolvency Trustee will assess your situation and explain what options you have to reduce or eliminate your debt. Based on your financial circumstances, they’ll determine if a consumer proposal is the best debt relief solution for you or whether filing for personal bankruptcy is preferable. They’ll explain the benefits and drawbacks of both options and answer any questions you may have.

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3. Create a draft of the proposal

Suppose you decide with your License Insolvency Trustee that a consumer proposal is the best way to resolve your debts. In that case, the next step is to create a new payment plan to present to your creditors. Your trustee will examine your income, assets, and expenses to determine what percentage of your total debts you can comfortably repay. They’ll work with you to calculate your monthly payment and how long it’ll take to settle your balance in full.

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4. Prepare the official documents

Your trustee will prepare all the necessary documents to be reviewed by your creditors. These documents outline how much debt you can repay, your monthly payments, and the time it’ll take to pay off the balance.

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5. File your consumer proposal

Once the required documents are ready, your trustee will file them with the court and the federal government. The court will grant you a stay of proceedings, which prevents creditors from pursuing legal action against you. Any existing wage garnishment orders in effect and collection calls will stop immediately. You’ll also be relieved of any duty to repay your creditors under your old payment terms.

6. Notify your creditors

Your trustee will inform your creditors that you’ve filed a consumer proposal. They’ll provide them with a copy of the proposal for review. Your creditors have 45 days to respond with a decision to either accept or reject your offer.
If more than 25% of your creditors oppose your proposal, they can request a meeting with you and the other creditors, which must take place within 21 days. During the meeting, you and your creditors can negotiate an alternative agreement that’s fair and suitable for everyone.

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7. Creditors vote on your proposal

For your consumer proposal to be valid, the majority of your unsecured creditors, based on the dollar value of your debt, must vote in favour of it. Once your consumer proposal is accepted, it becomes legally binding on all your unsecured creditors, even those who voted against it.

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8. Fulfill the terms of your proposal

Now that your creditors have approved your proposal, you can proceed with making your monthly payments. You’ll submit each payment directly to your licensed Insolvency Trustee, who’ll then disburse it to your creditors.

Your other obligation includes attending two credit counselling sessions, which will equip you with the tools and knowledge to help you manage your money.

Once you’ve completed your consumer proposal, you’ll receive a Certificate of Full Performance and be relieved of any further unsecured debt obligations.
Congratulations, you’re now debt free!

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9. Rebuild your credit score

A consumer proposal remains on your credit report for at least three years after you’ve submitted your last payment or six years from the filing date, whichever comes first. However, with no more unsecured debts holding you back, you have a solid foundation to rebuild your credit and work toward a promising financial future.

Learn how using a secured credit card can start improving your credit score.

What if my proposal is rejected by my creditors?

If your creditors disapprove of your proposal, you can work with your trustee to devise an alternative payment plan. Sometimes, all it takes is an offer of a slightly higher monthly payment to entice creditors into accepting your offer. Remember: your creditors would prefer to recover a portion of the money you owe rather than have you file for bankruptcy, where they risk getting nothing.

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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Book your free consultation.

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

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