Don & Maria: A Bankruptcy & Consumer Proposal Solution

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 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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