Bankruptcy Seizure & Co-Signed Loans

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Bankruptcy & Co-Signers

When someone is declared bankrupt, the bankrupt’s assets vest in the Trustee and the Trustee may take possession of and sell these assets for the general benefit of the bankrupt’s creditors.

If there are co-signors on a debt, when one of the co-signers files for bankruptcy the other co-signer is then responsible for the debt in full less any amounts that the creditor MAY receive from the bankruptcy. However, payment of funds from the bankruptcy will take a minimum of 1 year and the creditor will likely require payment by the co-signor well before any distribution.

It should be noted that there are items that are exempt in the province of Ontario. Section 67 of the Bankruptcy and Insolvency Act has 4 categories regarding exempt property.

  • property held by the bankrupt in trust for other persons;
  • property of the bankrupt that is exempt from seizure under the applicable provincial law where the property is situated and where the bankrupt resides;
  • GST credit payments and prescribed payments relating to the essential needs of individuals; and
  • Contributions to Registered Retirement Income Funds or Registered Retirement Savings Plans more than 12 months before bankruptcy.

The Provincial exemptions are set to allow a person to retain basic property/items.

In Ontario, the Provincial exemptions are as follows:

  • necessary and ordinary clothing of the debtor and his or her family – (NO LIMIT);
  • household furniture, utensils, equipment, food and fuel contained in and forming part of the debtor’s permanent home up to a prescribed amount or $11,300;
  • business tools, instruments and other chattels not exceeding a set amount or $13,150.00 ;
  • an automobile up to a prescribed maximum value or $6,600.00 ; and
  • Most pension plans and life insurance policies.
  • Equity in principal residence if it is less than $10,000.       (If the equity is more than $10,000, there is no exemption at all)

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Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
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02:33 29 Dec 22
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kevin mcweeney
01:13 22 Dec 22
The team at David Sklar & Associates is fantastic.I worked with Jerry whom not only made - what seemed like intimidating process to initiate at first - comfortable.He made everything transparent and took the time to explain the process every step of the way.He was kind, attentive, and professional. Everything was made straightforward and stress free and we found a solution together that worked.Thanks to Jerry and the team.
Jordie Angiolillo
18:22 21 Dec 22
From day one till the end which is today😁 DavidSklar gave me a 5star service and treatment. And I will 100% recommend him and his Associates. This is the best Christmas present ever! Thank you David! More business to come! Merry Christmas and a Happy New Year!!!
barbee diaz
16:37 16 Dec 22
I FOUND DAVID SKLAR & ASSOCIATES BY GOOGLING "BANKRUPTCY" (EARLY NOV. 2021). ON NOV.4, 2021 I HAD A MEETING WITH CORI NARON AT HER OFFICE AT ST CLAIR ANDBATHURST. HER POSITIVE APPROACH TURNED ASTRESSFUL SITUATION INTO A STEP BY STEP UNDERSTANDABLE PROCESSON SEPT. 23, 2022 I OBTAINED MY AUTOMATICDISCHARGE FROM BANKRUPTCY AND MY CERTIFICATE OFDISCHARGE.THANK YOU CORIBRUCE BURGESS
bruce burg
21:35 02 Dec 22
Jerry was wonderful and provided superb service. He is very knowledgeable, trustworthy, and made an intimidating and shame filled time in my life stress free. I hesitated for a long time to take the next step, but Jerry answered all questions, was patient and made the process effortless. I am eternally grateful, and highly recommend Jerry’s services.
M J
18:41 01 Dec 22
Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
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
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