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How Much Do You Have To Pay In A Consumer Proposal

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 used than bankruptcies. There are a lot of reasons behind the shift: Consumer Proposals protect your assets, they protect consumers from collection agencies and wage garnishments, and they often mean that creditors recoup more of their loans than they would in a bankruptcy. There’s also more awareness among Canadians about Consumer Proposals today than there was only a few years ago, thanks in part to Licensed Insolvency Trustees.

When you enter into a Consumer Proposal, the first step at David Sklar & Associates is finding out how big your monthly payment should be. Consumer Proposals in Ontario are not automatic. They must be voted on by all of your creditors, so they need to be fair to both you and your creditors. The point of a Consumer Proposal is to lower your debt payments to a point where you can afford them as well as your other expenses (such as secure debt, like a mortgage or car loan). When you come to David Sklar & Associates to learn about the Consumer Proposal process, we will also look at your finances and determine how much you should be paying your creditors based on your income and other expenses.

The most common payment plan for a consumer proposal is a monthly payment over a period of five years. However, the amount you have to pay and the period that you have to pay it for will depend on your income and expenses, your assets, and the total of your debts; Canada Consumer Proposal experts will help you find a number and term that is fair.

Sometimes, clients at David Sklar & Associates who are already in Consumer Proposals ask if they can pay off their debts faster. If your income increases, you are not obligated to increase your payments, but you can enter into a Consumer Proposal if you want to speed up the process. Since a Consumer Proposal lasts on your credit history for three years from completion, it can speed up the time you should wait before applying for a mortgage or another large loan. The experts can help with your bankruptcy or Consumer Proposal by representing the interests of all parties. Consumer Proposals are about creating a fair agreement that you can afford to pay.


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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.

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