3 Danger Signs That You Should Consider Bankruptcy

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No one ever plans on filing for bankruptcy, but it happens. Debt can catch up with you fast, and as hard as you struggle to pay it off, sometimes it’s not possible. Insolvency means that you do not have the income or the assets to settle your unsecured debts, including lines of credit, credit card bills, utilities, and other bank loans not attached to an asset. Filing for bankruptcy discharges you of that after you settle some of your assets and income to pay off your debts.

There is a stigma to declaring bankruptcy in Canada that the process doesn’t deserve. For the many people who go through insolvency every year, bankruptcy is a way to get their financial lives back in order. Bankruptcy is a tool that allows you to start over. Often, people wind up insolvent due to circumstances entirely out of their control. For their part, financial institutions often lend more money than they should. Some are resistant to bankruptcy because they worry about their credit rating, but if you’re facing insolvency already, your existing credit rating may not be worth fighting to keep. Sometimes starting again at zero is a better option. But how do you know when to declare bankruptcy and when to keep trying to pay it off on your own?

#1 You’re Struggling to Pay Bills

considering bankruptcy

There are many reasons why you may be struggling to pay your bills. Some of the most common causes of bankruptcy in Canada are an unexpected loss of income or job loss, as well as illness. Having to take an extended, unpaid leave from your job because you’re ill can quickly cause you to go into debt. Other common reasons include losing your own business and separation, as you suddenly have to pay your household expenses individually.

#2 Your Debt Has Gone to Collections

debt has gone to collections

If you’re getting calls from debt collectors, you’re being sued by debt collectors, or other legal actions have been taken against you, it’s time to talk to a bankruptcy trustee, now known as a Licensed Insolvency Trustee, such as David Sklar & Associates. Initiating bankruptcy proceedings will stop legal action from debt collectors. If you’re dealing with debt collectors, it’s time to learn about the bankruptcy process and how we can help.

#3 You’re Struggling to Pay Your Mortgage

When other financial obligations stretch your budget, you may struggle to pay your mortgage. Equity in your primary residence is exempt from bankruptcy proceedings if it is $10,000 or less. Debt relief through bankruptcy or a consumer proposal can help you get back on your feet and keep up your mortgage payments so that you don’t lose your home. Your home is one of your principal investments.

These are all major warning signs that you are possibly insolvent. You can get bankruptcy help in Ajax by visiting our office there, or any of our offices throughout the GTA. Bankruptcy trustees are here to help you get out of debt.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
I was a reck talking yo Jason Sklar was easy comfortable he explained everything and put my mind at ease I would recommend the team od sklar to everyone. I have already talked to my ci workers about them
kevin mcweeney
01:13 22 Dec 22
The team at David Sklar & Associates is fantastic.I worked with Jerry whom not only made - what seemed like intimidating process to initiate at first - comfortable.He made everything transparent and took the time to explain the process every step of the way.He was kind, attentive, and professional. Everything was made straightforward and stress free and we found a solution together that worked.Thanks to Jerry and the team.
Jordie Angiolillo
18:22 21 Dec 22
From day one till the end which is today😁 DavidSklar gave me a 5star service and treatment. And I will 100% recommend him and his Associates. This is the best Christmas present ever! Thank you David! More business to come! Merry Christmas and a Happy New Year!!!
barbee diaz
16:37 16 Dec 22
I FOUND DAVID SKLAR & ASSOCIATES BY GOOGLING "BANKRUPTCY" (EARLY NOV. 2021). ON NOV.4, 2021 I HAD A MEETING WITH CORI NARON AT HER OFFICE AT ST CLAIR ANDBATHURST. HER POSITIVE APPROACH TURNED ASTRESSFUL SITUATION INTO A STEP BY STEP UNDERSTANDABLE PROCESSON SEPT. 23, 2022 I OBTAINED MY AUTOMATICDISCHARGE FROM BANKRUPTCY AND MY CERTIFICATE OFDISCHARGE.THANK YOU CORIBRUCE BURGESS
bruce burg
21:35 02 Dec 22
Jerry was wonderful and provided superb service. He is very knowledgeable, trustworthy, and made an intimidating and shame filled time in my life stress free. I hesitated for a long time to take the next step, but Jerry answered all questions, was patient and made the process effortless. I am eternally grateful, and highly recommend Jerry’s services.
M J
18:41 01 Dec 22
Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
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