3 Danger Signs That You Should Consider Bankruptcy

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 and live in the Toronto area, call us at 416-498-9200 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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Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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