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 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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Book your free consultation.

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

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