Consumer Proposals

Considering Consumer Proposals as a method of avoiding bankruptcy in Canada? David Sklar & Associates of Greater Toronto have the expertise and experience you can rely on.

A Proposal is simply an agreement between a person and his creditors whereby the person pays only a portion of his debts, thus avoiding bankruptcy. A proposal is made to the creditors through a Trustee. If the creditors vote in favour of the proposal, then it is a binding contract, which all creditors must accept even the creditors who did not vote for the proposal. Proposals are a better deal for the creditors than bankruptcy and in the vast majority of cases are accepted!

To qualify for Consumer Proposals individuals must have debts, (excluding those on their home) that are less than $75,000.00. If more than $75,000.00, they can file another type of proposal called a DIVISION I PROPOSAL. The filing of a Proposal stops all legal actions undertaken or contemplated by unsecured creditors. The filing of a Proposal gives the debtor some "breathing space" so that he can approach the creditors and explain his financial situation and ask for support.

For further information on Consumer Proposals , explore our site, or contact us directly.

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Facing Bankruptcy ? Toronto trustee David Sklar and Associates serve the Greater Toronto Area and South Western Ontario