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.
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.
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.
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.
A Consumer Proposal has become the most commonly used insolvency process among consumers in Ontario. With 55% of insolvency cases in Ontario using Consumer Proposals, they are now more widely .
Over the past several years, the insolvency rate in Canada has consistently gone up month-over-month in February and March. In 2017, bankruptcies increased by 7.2% and Consumer Proposals by 12.4% .
Worried about money but not sure how bad the situation really is? The sooner you can get help with your finances from a Licensed Insolvency Trustee, the easier it is .
Does it feel like you always owe money to someone? You can easily forget to make payments when you’re juggling debt from all kinds of different sources. You’ve got mortgage .
You’re behind on your heat, water, and your phone and internet bills. You’ve maxed out your credit cards and you’re struggling to make minimum payments, all while the interest makes .
When you want to check your credit score before applying for a car loan, a mortgage, or an apartment, you contact Equifax or TransUnion and they send you a free .
Using your credit card can be something you don’t think twice about, whether it’s shopping online, paying at a restaurant, or filling up on gas. But as long as you .
Getting through a Consumer Proposal is no small achievement – insolvency is a humbling experience, but paying down your debts with a Consumer Proposal is a moment you should be .
When you’re insolvent and considering Consumer Proposals or Bankruptcy, one of the big questions you may have is how insolvency will change your life. What’s the process like, what’s it .
When you’re looking at mounting debt, it can be difficult to find a way out. You’re not trapped, but there are a number of different avenues you can take to .
If your debt problems seem insurmountable – we can help. At David Sklar & Associates, our Licensed Debt ProfessionalsTM have the experience and knowledge to help you get out of debt. 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 – we are here to help.
Call Us Today For a Confidential & Free Initial Consultation Call 416-498-9200