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?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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