5 Debt Problems A Bankruptcy Trustee Can Solve

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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 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, 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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The team at David Sklar and Associates Inc are very professional and are willing to help you get out of debt. Highly recommended.
Melissa MacKenzie
12:35 29 Mar 23
I would like to thank the team at David Sklar and associates inc. for all the time and effort they put in to support this process for me. This topic can be challenging to disclose but a big thank you to Christine for going above and beyond in guiding me through all my options and supporting me through the decisions. I cannot recommend this group enough , as they have shown me compassion , knowledge , and understanding throughout the entire process. I look forward to the next step of this process and learning how the proper way of becoming financially educated through the support of their financial counselling team. For anyone who is struggling , just know that there is a wonderful group of educated professionals at David Sklar who are available to help!
Michelle Plouffe
18:45 14 Mar 23
It took me awhile to get up the courage to contact David Sklar but I’m so glad I did. Trina walked through my options with me and provided the knowledge I needed to make a decision to help turn my financial situation around. She is patient and empathetic and answered any and every question that I had. Trina provided me the reassurance I needed that I was making the best decisions for me and my family. I’m so happy that I reached out and now have a plan to get back on track.
M. Mackenzie
19:59 12 Mar 23
Trina was very helpful and thorough.
Sam M
15:26 12 Mar 23
Christine was very helpful, kind, and understanding. She explained everything thoroughly, answered any questions I had, and was responsive to any concerns I had. 100% would recommend
Katherine Campbell
17:29 08 Mar 23
Jackie Stanley is excellent she took the time to explain everything to me and I am so grateful to her for giving me a fresh financial start so if you have any doubts don’t and go see her if you want to achieve financial freedom!
Heather Helfield
21:24 06 Mar 23
Amazing friendly staff that knows what they are going. They make a difficult situation not so bad. Would give 10 stars if I could.
alie Balan
22:37 25 Feb 23
Very helpful and kind and gave me all the available options before helping me decide which one was best for me. I would definitely recommend Jackie
Alison Rivard
01:01 21 Feb 23
Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
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