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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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!
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02:42 10 May 22
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