Bankruptcy is a tool that’s available to honest debtors who have taken on more debt than they can pay. It will help you take back control of your financial life and start rebuilding your credit history, your financial security, and your ability to qualify for major loans like a mortgage, car loan, or business loan in the future.
Don’t let the stigma around bankruptcy prevent you from making a smart decision when it comes to a debt you can’t afford to pay back.
There are some common myths about bankruptcy that prevent many people from exploring their options earlier. Here’s the truth about filing for personal bankruptcy in Ontario today:
- You will not lose your job. In fact, there is no reason for your employer to know that you have filed for bankruptcy. Only a narrow handful of professions are affected by bankruptcy, mostly those in finance.
- It’s unlikely that you will lose your home. This is the number one concern we hear from clients considering bankruptcy at David Sklar & Associates. There is some equity exemption on your principal home which helps, but if there is more equity than the exemption, many times a payment arrangement can be made so that you can keep your house.
- Paying off your debt on your own is not necessarily a better option. For many, it’s simply not possible, but the attitude that you should go to extremes to pay off your debt no matter what can make your situation worse, such as with a high-interest debt consolidation loan. Bankruptcy is a serious financial decision, but sometimes it’s the right one. In a bankruptcy, you do something, but it is a significant reduction from what you owe.
If there’s one thing we hear at David Sklar & Associates all the time, it’s that our clients wish they had done it sooner.
There are two conditions to be eligible for bankruptcy:
- You owe at least $1,000 in unsecured debt, which includes credit card debt, utility bills, medical bills, money owed to a merchant or service provider, payday loans, lines of credit, or any loan that’s been extended without collateral. A higher risk for lenders, it almost tends to come with higher interest rates.
- You are insolvent, which means that given the size of your debt and your income, you can’t reasonably be expected to pay it back. A consultation at David Sklar & Associates in west Toronto or any of our other 5 GTA locations can help you determine your eligibility.
A bankruptcy trustee, now known as a Licensed Insolvency Trustee, is the only professional who can help you determine if you are insolvent. They are also the only professionals who can offer personal bankruptcy services and real debt relief.
Filing for bankruptcy is not a personal shortcoming. It’s a way for honest debtors to take back control of their finances. Often people wind up in debt they can’t afford to repay because of circumstances outside of their control. If you’re ready to get your financial life back on track, we offer financial services in west Toronto including bankruptcy and consumer proposals.
Your bankruptcy trustee is ready to walk you through the insolvency process. Start with a consultation and learn about the different options available to you. This is your chance to start over again.