Consumer Proposal in Toronto
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David Sklar & Associates Inc.
Consumer Proposal & Bankruptcy Trustees
Serving the Greater Toronto Area
We Can Help
The main goal of this blog is to help our website visitors better understand Consumer Proposals and the less frequently used: Division I Proposals - through explanation and example.
As one of the leading Bankruptcy Trustees in the Greater Toronto Area, we have helped thousands of people through the Consumer Proposal process and onto better lives.
What is a Proposal? It is a legal process provided by the Bankruptcy and Insolvency Act that enables qualified individuals who are unable to reasonably repay their unsecured debts, make legally binding proposals to their creditors. These proposals are agreements to repay a portion of the unsecured debts through the services of a Licensed Bankruptcy Trustee*. While the amount of debt being repaid is usually substantially less than the actual amount owed, it is normally more than the creditors would get if the debtor went into Bankruptcy.
How does a Division I Proposal differ from a Consumer Proposal? The Consumer Proposal is for individuals with total debt of under $250,000 (excluding their primary residence mortgage), while the Division I Proposal is for individuals with total debt over $250,000 (excluding their primary residence mortgage) and for businesses.
Under either Proposal, creditor-approved applicants can avoid Bankruptcy and keep their assets (note: secure loans on assets must be paid in order to retain those assets).
Once a Proposal is in place, all unsecured debt collection efforts, including calls, letters, wage garnishments, and legal actions must, by law - stop.
During the life of the Proposal, the debtors have legally binding obligations that they must honour - including systematic debt repayment, budgeting, and most importantly debt management training.
*Note: Under the Bankruptcy and Insolvency Act only Licensed Bankruptcy Trustees can submit and manage Proposals. Before any decision about making a Consumer Proposal or a Division I Proposal can be made – a Licensed Bankruptcy Trustee must evaluate an individual’s current situation.
We Can Help. If you live in the Greater Toronto Area and are dealing with overwhelming debt, call the offices of David Sklar & Associates at 416-498-9200 to book your free initial consultation at one of our six convenient locations.
Consumer Proposal in Toronto: Recent Posts
Case History
Consumer Proposal Toronto Case History: Stewart
Sometimes in life it is reassuring to know there are people who hold on to their principles through the tough times. Consumer Proposal Toronto Case History: Stewart
Consumer Proposal – What’s in it for Creditors
Find out why unsecured creditors will vote in favour of a Consumer Proposal that offers to repay less money than they are owed. Consumer Proposal – What’s in it for Creditors
Case History
Avoiding a Second Bankruptcy in Toronto
Yvette & Georges (not their real names) were facing one of their greatest fears, having to go into bankruptcy a second time. Avoiding a Second Bankruptcy in Toronto
Debts in Consumer Proposals Toronto
The types of debts that can be included in a Consumer Proposal in Toronto – are closely regulated by the Bankruptcy and Insolvency Act. Debts in Consumer Proposals Toronto
Increasing Rates of Consumer Proposals in Toronto CMA
Since 1993 Canadians who qualified, have had the option of filing for a Consumer Proposal rather than Bankruptcy. In Toronto, the trend towards proposals and away from bankruptcy continues. Increasing Rates of Consumer Proposals in Toronto CMA
Case History
Consumer Proposal – Finding Help in Toronto
‘Find out how ‘Susan’ (not her real name) is rebuilding her financial life, after losing it all to drug addiction. Consumer Proposal – Finding Help in Toronto
Case History
Consumer Proposal Mississauga - Single Mother
With the birth of her first child, 'Simone' (not her real name) discovered that her income as a factory worker was not enough to cover her additional costs. Using credit for the basics in life, led to $35,000 in credit card debt – and there seemed to be no way out. Consumer Proposal Mississauga - Single Mother
Debt Consolidation – Your Options
Understanding the Debt Consolidation options that are available to you – can help you become debt free. Debt Consolidation – Your Options
Consumer Proposals – Relief & Hope
The grinding stress of financial chaos – does not have to be a constant in your life. Find out how others were able to get relief from their debt burden and find hope for their future at: Consumer Proposals – Relief & Hope
Case History
Consumer Proposal with a Unique Payout
‘Michael & Deborah’ (not their real names) needed a unique solution to their difficult situation. Discover how DSAI was able to help. Consumer Proposal with a Unique Payout
Credit Counselling Toronto – Facing Debt Together
Combine an experienced and knowledgeable Certified Insolvency Counsellor with a young Toronto couple intent on learning to better manage their finances – and see what you get at: Credit Counselling Toronto – Facing Debt Together
Case History
Crushed by student loans and the sole parent of two children - Carol (not her real name) was struggling from pay cheque to cheque. Find out how she dealt with this overwhelming situation. Overwhelmed by Student Loans
Division 1 Case History
Mark (not his real name) was a successful IT executive who had not dealt well with ‘accounting stuff’. As a result he was in trouble with Revenue Canada and several banks. Find out how we were able to help Mark at: Mark – A Fact of Life
Consumer Proposals and Student Loans.
Unlike other forms of unsecured debt, student loans do not automatically become part of a Consumer Proposal. Find out more at: Consumer Proposals and Student Loans...
Case History
James (not his real name) was getting his business back into good shape – but the personal debt he had incurred to keep it going during the lean years, was threatening to destroy his third generation company. James – Never Too Old
Consumer Proposal Filing Rates in the Greater Toronto Area
Check out these exciting statistics from the Office of the Superintendent of Bankruptcy Canada. They show what appears to be an increase in the number of people in the GTA choosing to file Consumer Proposals rather than Bankruptcy: Consumer Proposal Filing Rates in the Greater Toronto Area...
Case History
Building a Better Life by Design Not Chance
When Russell (not his real name), a recovering compulsive gambler, tried to fix his huge debt load – he discovered that his previous Bankruptcy had a major impact on is choices. Building a Better Life by Design Not Chance.
Consumer Proposal Challenges
At David Sklar & Associates we offer exceptional service to all of our Consumer Proposal clients, especially for those few clients who run into additional challenges. Find out how in: Consumer Proposal Challenges...
Case History
Consumer Proposal for a Professional
At 28, Jessica (not her real name) had lost control of her personal finances. Collection calls to her workplace had begun to raise doubts about her ability to manage business finances. A Bankruptcy would make her unemployable, but there did not seem to be any other choice...Consumer Proposal for a Professional.
Debt Management Programs vs Consumer Proposals
There are options available for people having difficulty paying their debts that you need to be aware of. Find out about two of them at: Debt Management Programs vs Consumer Proposals...
Case History
Debt Management – More Than a Balancing Act
Bad luck and lack of debt management pushed a Toronto family to the brink of Bankruptcy. Find out how Bill and Susan (not their real names) found their way back from the brink and rebuilt their lives with the help of a Division I Proposal. Debt Management – More Than a Balancing Act...
Do You Qualify for a Consumer Proposal?
While only a Licensed Bankruptcy Trustee can help you find out for certain if you qualify for a Consumer Proposal – there are some requirements that you should be aware of. Check out Do You Qualify for a Consumer Proposal?...
Case History
Paul & Nancy - Stopping Aggressive Collectors
Find out how Paul & Nancy (not their real names) and their family came together to deal with aggressive collection agents, overwhelming debt and job loss. Read more of Paul & Nancy's story...
Consumer Proposals vs Bankruptcy – Which is Better?
Exploring Your Options
Consumer Proposals and Bankruptcy have some similarities - they both:
They also have major differences which include significant factors such as the retention of assets, disbursal of surplus income, duration, future implications, and other items of concern...read more
Case History
Managing Excessive Debt on a Fixed Income
When Freda (not her real name) first came to David Sklar & Associates – she thought her only option was Bankruptcy. At 68 and living on a low fixed pension, she could no longer afford the large debt payments she was carrying. Read more of Freda’s story...
We Can Help
If you live in the Greater Toronto Area, find your debt load overwhelming, and you are considering a Consumer Proposal or Bankruptcy – we can help. At David Sklar & Associates, we can help you explore your options and find your best way out of debt. Call us today for a Free Consultation at 416-498-9200 or get started right now with our Quick Assessment Form.
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