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. 

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest

Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
js_loader