5 Answers To Common Bankruptcy Questions

Many of the people who come to David Sklar & Associates for personal bankruptcy help come with a lot of questions. There is a lot at stake, and part of our job is helping you to understand exactly what you’re getting into when you declare bankruptcy.

Going through bankruptcy is a difficult time in anyone’s life, but you’re not the first person to declare bankruptcy and you won’t be the last. According to Bankruptcy Canada, one in six Canadians will declare bankruptcy or file for a Consumer Proposal at some point in their lives, with as many as 150,000 Canadians going through insolvency every year.

Debt is reaching ever-higher levels among Canadians and for many, it simply becomes too much to handle.

It’s important to keep in mind that bankruptcy may not be your only option when you have debts you can’t repay. A Consumer Proposal can reorganize your debt, stop interest from accumulating, and give you an affordable way to pay back your debt.

Talk to the Licensed Insolvency Trustees at David Sklar & Associates, formerly known as bankruptcy trustees in Toronto, before it’s too late to consider a Consumer Proposal alternative.

Here are some facts about 6 of the most common questions we get about personal bankruptcy:

1. Will You Still Owe the CRA Money?

Tax debt can be a very worrying type of debt and many get into debt because they simply don’t understand their taxes. You can wind up owing money because your deductions are too low due to holding multiple jobs, because you misfiled your taxes or didn’t pay HST as a self-employed person, or from your personal income taxes.

The CRA typically looks favourably at Consumer Proposals, but if you declare bankruptcy, a Licensed Insolvency Trustee will have to file a pre-and post-bankruptcy tax return. If you still owe money on your post-bankruptcy tax return, you will still have to pay this amount.

2. What Happens to Your Foreign Property?

Foreign property is a difficult issue, and we suggest that you talk to us at David Sklar & Associates if you’re worried. We have your best interests in mind and you should always be forthcoming with your Licensed Insolvency Trustee.

3. Will You Be Discharged of Debt to Utilities in Ontario?

Yes; when you go bankrupt, you are discharged of unsecured debt, a.k.a., debt where the creditor has no rights to your assets (in contrast to a mortgage lender).

However, it could change your relationship with the utility provider – even if they are the only provider in your region, while they can’t refuse you service, they may demand payment up front in the future.

4. What Happens to Your Partner or Spouse When You Declare Bankruptcy Alone?

When you declare bankruptcy, your partner or spouse will not be directly affected. You are responsible for your own debts, unless you owe the debt together.

If you do have joint debt, your spouse will be affected – you do not owe half the debt individually. If you declare bankruptcy, your partner or spouse would become solely responsible, as a co-signer. Anyone with further questions is encouraged to talk to us at David Sklar & Associates.

5. Is Bankruptcy Different From Debt Consolidation?

When you are insolvent, it’s because you can’t keep up with unsecured debts, i.e., debts not explicitly connected to an asset like property or a vehicle.

Debt consolidation usually involves taking out a loan to pay off your unsecured debts by reducing the number of bill payments each month and to possibly reduce the interest rate, whereas bankruptcy discharges you from your unsecured debts.

Whatever your question about how personal bankruptcy services can benefit you, the process itself, or your assets, ask us. Your first consultation is free, so there is no reason not to thoroughly go over your options for insolvency.

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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