5 Bankruptcy Facts You Should Know Before You File

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.

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

home equity

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.

If you’re worried about bankruptcy, stop by our office in Ajax, our head office in Toronto, or our location in Mississauga and offices in Brampton. First consultations are free with no obligation. A bankruptcy trustee is here to help you get out of debt.

Get more bankruptcy information before you decide to file. The more you know, the better prepared you will be for the consequences. If you’re struggling with debt, get help sooner than later. The earlier you start, the better off you will be.

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