David Sklar & Associates Inc.

Consumer Proposal & Bankruptcy Trustees
Serving the Greater Toronto Area

Do You Qualify for a Consumer Proposal?

Note: In Canada, a Consumer Proposal is a legally binding process that enables people to pay a portion of their outstanding unsecured debt, over a period of not more than 5 years – after which they will be released from all the debt covered by the Proposal. Consumer Proposals are regulated by the Bankruptcy and Insolvency Act and require the services of a Licensed Bankruptcy Trustee (such as David Sklar & Associates).

Your eligibility and suitability for filing a Consumer Proposal is determined by you and your Trustee after a detailed examination of your current finances.

To file a Consumer Proposal you:

1. must be at least 18 years of age,


2. must not owe more than $250,000* (does not include mortgage on main residence),


3. must be unable to reasonably repay your current unsecured debts in a reasonable length of time (insolvent),


4. must use the services of a Licensed Bankruptcy Trustee to determine your insolvency and eligibility - as well as to prepare and file the Consumer Proposal,


5. must be financially able to complete the terms of the Consumer Proposal (able to prove you have a stable income), and


6. must not have any open or uncompleted previous Proposals.

Once your Consumer Proposal has been filed by your Trustee, your unsecured creditors will look it over and decide whether or not to accept the offer. If the majority (in terms of amount owed) of creditors vote to accept your Proposal, and the Court approves of it – your Consumer Proposal will then go into effect. If your Proposal is rejected, you will be able to work with your Trustee to revise and/or consider a counter offer for your Proposal, or consider other options such as Bankruptcy.

A meeting with a Bankruptcy Trustee will help you to determine if you are eligible to submit a Consumer Proposal. More importantly, it will help you explore all your options and make the decision that is best for you.

If you are contemplating filing a Consumer Proposal and live in the Greater Toronto Area – David Sklar & Associates offers a free initial consultation to help you identify your best options. Call us today at 416-498-9200 to book your appointment.

*Note – individuals who owe over $250,000 (excluding the mortgage on their main residence) may be eligible to file a Division I Proposal.