A Consumer Proposal is a legally binding agreement between you and your unsecured creditors to pay back a portion of your unsecured debt over a period of up to five years – at the end of which, the debts covered in the Consumer Proposal will be considered legally paid in full. The amount to be paid back will be based on the amount you can reasonably be expected to pay.
A Consumer Proposal will put an immediate end to all the collection efforts of your current unsecured creditors – it will stop collection calls, remove garnishments, and stop legal actions.
We are one of the largest filers of Consumer Proposals in the Greater Toronto Area with six locations across Southern Ontario. We are proud to operate in Canada and offer our experience and expertise to help you through the challenges of making and successfully completing a Consumer Proposal.
If your debt load is out of control and you want the services of experienced and caring professionals to help you explore your financial options – call David Sklar & Associates at 416-498-9200 or Quick Assessment Form to book your Free Consultation. During your consultation, we will help you understand what your current financial situation is, how best to fix it, and how to move on to a better life. With six offices in the Greater Toronto Area across Southern Ontario – we are here to help.
Do I qualify for a Consumer Proposal?
That is something that can only be determined by you and a Trustee after reviewing the details of your financial situation.
A Consumer Proposal does not normally include the sale or disbursement of assets. If you have a mortgage on your house, you will have to continue making your payments to keep your house – the same goes for your car loans or any secured loans. Secured debts, such as mortgages on homes and car loans, are not covered in Consumer Proposals.
If you have kept your mortgage payments up to date, can prove that you will be able to make mortgage payments in a timely manner in the future, and meet your lending institution’s requirements, you should be able to qualify for a renewal. You will need to discuss this with your lending institution.
At the completion of a Consumer Proposal, you will be released from paying all the unsecured debt covered in your Consumer Proposal. Normally, the amount of debt you are required to pay in a Proposal is less than the actual amount of debt owed.
Can I do a Consumer Proposal before going out of the country to start employment?
You will need to speak to your Trustee regarding your unique situation.
The cost of your Consumer Proposal will be dependent on a number of factors including your monthly budget and the value of your estate. Speak with your Trustee to get specifics on your situation.
A Consumer Proposal can last for up to five years.
If you miss three months of your payments on your Proposal and do not file an Amendment to your Proposal – your Proposal will no longer be a legally binding agreement and your creditors will be free to take legal action against you for the full amount of the debt you owe them. You may have to file for Bankruptcy if you default on your Consumer Proposal. Your Trustee will be able to advise you on this.
This would depend on the amount of the debt. If it proves to be nominal, your proposal may continue as offered. However, if the amount of the debt you forgot is material, you may be required to increase your proposal payment. Your Trustee would advise you of any necessary action.
If you feel that your current debt situation is getting out of control, please call David Sklar & Associates at 416-498-9200 or Contact Us to book your Free Consultation.
During this initial consultation, we will help provide insights to help you understand what your current financial situation is, the best options for fixing it, and how to move on to a better and prosperous life. With six offices across Southern Ontario we are here to help so call today.