5 Debt Problems A Bankruptcy Trustee Can Solve

Debt and debt problems come in many shapes and sizes. From tax debt to credit cards to wage garnishments, bankruptcy trustees, now known as Licensed Insolvency Trustees, can help you with an unsecured debt of all types. These are just 5 types of debt and debt-related problems where a bankruptcy trustee can help. Whatever your unique situation, bankruptcy trustees may be able to help with unsecured credit.

Debt Consolidation Loans

If you qualify for a good interest rate, a debt consolidation loan may make sense, but if you have a poor credit score, you may only qualify for high-interest debt consolidation loans. Many people who come to David Sklar & Associates first tried debt consolidation loans, only to discover that they still couldn’t afford to keep up with payments. Only bankruptcy trustees can provide debt relief that forgives a portion of your debt.

Credit Card Debt & Bank Loans

Credit card debt and bank loans are some of the most common debt problems we see at David Sklar & Associates. When you have used up your line of credit with the bank or pushed multiple credit cards to their limit, minimum payments can get out of hand while interest rates keep you from making any progress.

Tax & CRA Debt

Do you owe back taxes such as income tax or HST from a small business or self-employment? Taxes and HST aren’t a simple process when you run your own business and it’s easy to miscalculate what you owe or come up short at the end of the year if you weren’t fully informed. An audit can quickly turn up back taxes, as well as late penalties and interest charges you weren’t prepared to pay. Tax and CRA debt can become part of your consumer proposal in Ontario, easing the process for getting out of debt.

Student Loans

Student loans are a unique type of debt and consumer proposals and bankruptcy may only be able to help you stop collection efforts while in the process. Student loans come with a waiting period before they can be discharged fully in a bankruptcy or a consumer proposal. In Ontario, there is a seven-year waiting period before you can have a student loan discharged and forgiven in full in a consumer proposal or bankruptcy. There are some circumstances in which you can include student debt after five years if you prove financial hardship to the court. If you completed your studies more than seven years before you file a proposal or bankruptcy, the student loan debt will be discharged and forgiven.

Wage Garnishments

Creditors and debt collectors can take legal action to garnish your wages. How much of your wages are garnished and whether they are taken before or after taxes depends on the provincial law. In Ontario, creditors can garnish up to 20% of your after-tax paycheque. Nevertheless, that can be a disruptive amount to lose when you have other bills and debt payments like mortgages to keep up with.

Talk to us at David Sklar & Associates right away if you’re facing a wage garnishment. Filing a consumer proposal puts a stay of proceedings on any attempts by individual creditors to collect from you, including a wage garnishment. A stay of proceedings prevents any one creditor from “skipping the line” to collect.

If you’re facing any of these debt problems, learn how a consumer proposal can benefit you and give us a call. A bankruptcy trustee can help you with debt consolidation loans, credit card debt, wage garnishments, student loans, and tax 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. 

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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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