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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I worked primarily with Christine, who was very friendly and outgoing. She was quick to help me, and explained everything I needed to know very well. She's quick to answer any questions I may have as well. The other members I spoke with were also very kind and jovial, and were happy to help me with anything they could. They made sure my proposal fit within my budget, and got everything going very quickly. I was happy to work with them, and would highly recommend their very friendly service!
Melissa McAllister
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Very processional and understanding of my situation. Thanks to all your team.
Luc Valade
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Jennifer Norton's exceptional assistance with my consumer proposal was life-changing. Her professionalism, expertise, and dedication were evident from the start. Jennifer's thorough explanations and attention to detail created a tailored proposal that set a clear path to financial freedom. She went above and beyond, advocating for my best interests and providing invaluable support. Thanks to Jennifer, I'm on track to a stress-free financial future. I wholeheartedly recommend her – she's not just a financial expert; she's a life-changer. Thank you, Jennifer!
Thomas
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They made a difficult situation, easy thank you.
Ray Barkley
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I had a great experience with Christine from David Sklar & associates. Very professional, and easy to get through. Thank you
fukinwith doug
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Great customer service and a smooth process to get your finances on track. Informative and thorough.
Adrian Downey
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From the moment I sat down in the office, I felt welcome and at ease. Grace Cuffaro was both friendly and highly informative. She is extremely knowledgeable and answered all of my questions in detail, making sure I understood before moving on. I was reassured throughout the process that I was making the right decision and that it was not uncommon nor anything to be ashamed of. I didn't expect my appointments to be such positive experiences, but that's exactly what they've been!
P Bains
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I was in a tough financial position and found myself searching for relief. I came across David Sklar & Associates page when doing my research on financial advice. The reviews were amazing, but I was concern because I didn’t know what to expect. I made the decision to set up a consultation and had the pleasure to meet with Jennifer Norton. Right from the beginning, she was attentive, knowledgeable, and pleasant to meet with. The experience was painless and very educational. Jennifer made sure I understood my choices, answered my questions, and concerns promptly, in person, over the phone and via email. I’ve been working with Jennifer for a couple months now and I am pleased that Jennifer is the manager handling my file. I would and have recommend Jennifer Norton, David Sklar & Associates to anyone in need of direction regarding finances.
A.L Thompson-Lawrence
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I had my first meeting with Jennifer, she was really understanding and extremely helpful, and got everything done in a timely manner.
Tamas Wint
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Jennifer Norton has been the most helpful throughout this truly embarrassing situation that I find myself in. She is informative, understanding, and there is absolutely no judgment. She has handled everything in a very professional and respectful manner and I am SO glad that I have them on my side. Definitely a huge weight off my shoulders.
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