Don & Maria: A Bankruptcy & Consumer Proposal Solution

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Messy Family Finances – One Toronto Family’s Solution

 

Despite the clarity that we try to present our case histories with – finances can be messy.

And for some young families, that have been struggling to get a solid start – finances can be extremely messy.

A case in point is Don and Maria (not their real names).

Originally from the Maritimes, this determined couple in their early 30s have two small children and a dream of financial security.

However, when they first came to David Sklar & Associates, what they had was:

    • $40,000 of debt,
    • no way to repay it, and
    • creditors threatening legal action.

Some of the debt came from Don’s 12 year-old student loans, but much of it came from their decisions to move in hopes of finding work. There were many moves, from the East coast to Alberta to Ontario – as well as moves within each of the provinces they moved to.

Without strong marketable skills, neither Don or Maria were able to find good paying, long lasting jobs. And each move put them further into debt.

Of the two, Don had been the most successful at finding work, and as a result, most of their debts were in his name.

Their last move to a small townhome, in an older Toronto neighbourhood, brought additional stress. Don was accepted to a vocational training course that was subsidized, but brought in only $1,200/month. Maria was unable to find a job and daycare for her two toddlers that would net her more than the child subsidy she was getting of $960/month. This meant that they would have to live on $2,160/month while Don was taking his one-year course.

At this point in time, some of their creditors had had enough and began to put extreme pressure on Don and Maria for payment – threatening to put garnishees on their incomes.

Don and Maria realized that they had to deal with their financial mess quickly – or risk ending up in even more trouble. They decided to try a free consultation with David Sklar & Associates.

*** ***

During their initial appointment, they met with Serena Peksa, a Certified Insolvency Counsellor, who reviewed their finances and options with them in detail. Personable and professional, Serena put them at ease and helped them to focus on their financial issues with a clarity they had not previously had.

As they were both insolvent, with no assets, they could both file for bankruptcy – however Don and Maria though it would be better for one of them to file for bankruptcy and one of them file a consumer proposal. That way, they would be able to repay at least some of their debt.

After meeting with the trustee and reviewing their situation, it was agreed that Don should be the one to declare bankruptcy, since the debt in his name was the largest at approximately $33,000. His debts included student loans (which were old enough to be removed in a bankruptcy), utility bills, back rent to previous landlords, and moving expenses.

As he was a first-time bankrupt and had no surplus income, Don’s bankruptcy would last for 9 months with monthly fees of $200. This would coincide with the completion of his vocational training – and provide a timely fresh start.

Maria would file a consumer proposal on the approximately $7,000 of debt that was in her name. Her proposal was accepted by her unsecured creditors with monthly payments of $80 to run for 60 months – after which, she would be freed from those debts.

Both Don and Maria, as part of their bankruptcy and consumer proposal agreements, were required to attend credit counselling. During their first session they were able to use their new found financial clarity to begin work on a plan for moving their family towards the financial security they had only dreamed of in the past.

To protect our clients’ privacy, aspects of this case study have been altered

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 was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
David
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
Hi there! I am very glad to met this company, especially Jackie Stanley. Thanks for her great work and help me to save my money! Very appreciable!
Mehri Agil
02:43 26 Oct 22
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