5 Bankruptcy Facts You Should Know Before You File

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Bankruptcy is a major financial decision, but for many, it’s their only way out of debt. Before you file for bankruptcy, there are a few things you should know about the process.

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1) You Need a Bankruptcy Trustee in Ontario

If you’ve decided it’s time to declare bankruptcy, you need a bankruptcy trustee in Ontario, now known as a Licensed Insolvency Trustee. Bankruptcy trustees are licensed by the Canadian government and they are the only professionals who can file bankruptcy on your behalf. That’s what we do at David Sklar & Associates.

2) Disclosing and Assigning Your Assets

One of the first things you will learn about personal bankruptcy from a bankruptcy trustee is that you will need to disclose your assets and assign them to a bankruptcy trustee. The trustee then uses those assets to repay your creditors. Property such as a basic car and a limited amount of equity in your home is exempt. When you come to David Sklar & Associates, we can provide more information about exempt assets and specifically what you may lose.

3) You May Have to Pay Surplus Income

As part of your bankruptcy, you will also have to report your income and living expenses to your bankruptcy trustee. During the bankruptcy process, you may need to pay a portion of any surplus income to settle your debt. Your surplus income is dependent on the size of your family. You can check out the 2018 surplus limits on Bankruptcy Canada.

4) Discharge Time Depends on Certain Factors

Bankruptcy isn’t immediate. There is a period of time in which you will have to pay surplus income. For first-time bankruptcies, usually, you are automatically discharged after 9 months. If you are paying surplus income, it may be up to 21 months before you are discharged. This differs from a consumer proposal in that they can last up to five years, though the processes are different.

5) Bankruptcy Is Your Last Resort

There may be better options than bankruptcy available to you, including consumer proposals. Consumer proposals do not require you to sell any of your assets. Instead, you pay back your debt in fixed monthly payments, potentially with a reduction in how much you owe. Giving up assets such as investments, property, or equity can set you back financially. Save bankruptcy as a last resort. It helps if you book an appointment at David Sklar & Associates sooner than later to discuss alternatives.

Take Your First Step Towards A Debt-Free Life

If you are considering filing for bankruptcy, get in touch with the Licensed Trustees at David Sklar & Associates. Our trustees will help you weigh all of your options, explain your rights, and help you identify your entitlements in bankruptcy.

Book your free confidential consultation with David Sklar & Associates today and make a decision your future self will thank you for.

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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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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
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
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