Common Misconceptions About Filing for Bankruptcy

You know that you’re caught in a cycle of debt when your debt keeps growing and you keep borrowing, sometimes just to make payments. Rising debt can elevate your stress levels and become impossible to fix. It can happen to anyone regardless of their situation and it’s incredibly difficult to get out. The Bank of Canada has raised interest five times since mid-2017 leading to more Canadians facing debt that seems impossible to overcome.

Bankruptcy

Generally speaking, bankruptcy doesn’t have a good reputation. We don’t discuss bankruptcy while out with friends because it has some scary, ominous associations. When debt starts to control your life, you have to take action. While it may sound scary to the uninformed, bankruptcy is a form of debt relief that can take you from the cycle of debt to a path towards financial stability and long-term planning.

The legal process of bankruptcy is meant to financially rehabilitate someone in serious debt rather than punish them. Through a Licensed Insolvency Trustee (formerly known as bankruptcy trustee), individuals can file for bankruptcy and get clarity on the whole process. Click this link here for 5 facts you need to know before filing for bankruptcy and begin to understand just some of the misconceptions around the process.

At a time when overwhelming debt is the new norm in Canada, you deserve to get help from a trustee in bankruptcy in Toronto at David Sklar & Associates. Many misconceptions about bankruptcy come from the amount of media we Canadians consume from our American neighbours —Canadian bankruptcy law is very different from American law.

It’s time to put aside the inaccurate representations of bankruptcy and clear the air. Below are some of the most common myths and misconceptions about bankruptcy in Canada.

You’ll Lose Your Home

Unsecured creditors may be entitled to some equity in your home above and beyond exemption limits. Very few people actually lose their homes these days, but if there is non-exempt equity in your home at the time of filing, you will make a settlement payable to the estate through your bankruptcy trustee.

You’ll Lose “Everything”

This is what it might feel like when you finally admit that it’s time to throw in the towel and file for bankruptcy, but it’s not accurate that you’ll lose all of your belongings. With the exception of items of extraordinary value like fine art that you have to declare on your Statement of Affairs, your personal effects are exempt in bankruptcy.

You Can’t Get Future Credit

Bankruptcy is meant to rehabilitate the debtor and in that spirit, it isn’t fair to keep someone who has filed for bankruptcy from, say, getting a mortgage. The record of your bankruptcy will stay on your credit report for six years after you are discharged but then it’s gone.

You’ll Hurt Your Spouse’s Credit

If you file for bankruptcy, you do not affect another person’s credit. It’s that simple. If you share debts with your partner and they don’t file for bankruptcy, they are still liable for those debts, but not yours.

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I've used these services twice and they have always been understanding, supportive and informative. They give you hope when you feel like there is none. I've referred multiple people to them and they've all had the same professional experiences. Jackie Stanley was amazing and got the job done. Thank you!
Kirah32
02:07 03 Mar 21
Dealing with any kind of debt can be stressful. Jackie is amazing! Professional, warm and extremely helpful to say the least! She made sure to answer all of our questions, address any concerns and made this whole process as smooth as possible.
Kristine San Gabriel
15:14 02 Mar 21
Working with David Sklar has been an easy and detailed process. I am especially thankful for the personal services provided by Jackie Stanley as she has been very informative and always ready to answer any questions or concerns in a timely manner. I highly suggest working with Jackie if the opportunity presents itself.
Clayton Surujbally
17:09 18 Feb 21
On February 2 l made the somber driveTo David Sklar and associates.I had known this location from having drovePast it many times over the years.I made a appointment using the phone numberOn their door in Pickering, OntLater that day l had a consultation withTrina Powell.Immediately upon meeting with her l wasBecomming more relaxed with the proceedings.Trina, was very down to earth, and very professional.We all have our calling, l can only gather sheHas found hers, and she is very good at herJob, and career.I met with her again two days later but on thisVisit l felt more relaxed, and self assured of myDecisions, having already met with Trina.Thank you! Hat's off to you.I also had a phone zoom call with MarkTo whom as well was very easy, and comfortableTo talk to,Thank you, Mark.The team at David Sklar and associatesShould take great pride, and comfort when theyHelp people, like me and probably so many others.Thank you.
Chris Thompson
17:11 07 Feb 21
I have dealt with this company before many years ago when I did my bankruptcy , and found to be very trustworthy, professional, and right at ease. No judgement, very understanding and very supportive. So of course would come to then again when this time did the debt consolidation. The staff is friendly and goes over all the details with you and answers all your questions so you know exactly what to expect and make an informative decisison. I aslo like how if I had any questions could leave a message or email the company and how promptly they answer me back. Thank you David Sklar & Associates for getting me back on the right track and living a life of debt free again. I have my freedom back thank you for all your help and support. Amen 🙏
Desiree Balkaran
17:09 07 Feb 21
I am so grateful to Rhoda Lewis for an amazing opportunity to start fresh, she is very knowledgeable, professional and very friendly. I felt so comfortable from the moment I walked into her office, I definitely would recommend Rhoda to anyone who is looking for help. I love and appreciate you very much for helping me. After all these years I still kept in touch with you via email just to say thank you. Thank you again so very much and continued blessings.
Elizabeth Thomas
09:18 04 Feb 21
Jackie Stanley will take you step by step in explaining the process professionally, answering all the question I had over the telephone or e-mail. We are very satisfied and grateful for her work and effort. Dan Podeanu
Andrei Podeanu
02:09 01 Feb 21
Ashley Carter was very nice to me and professional and she helped me with my issue and she answer my questions in email. She helped me a lot and she gave me less stress.
Daniel Domingues
22:19 23 Jan 21
Jackie Stanley take you step by step in explaining the process professionally, replying on our every question over the telephone or e-mail. We are very satisfied and grateful for her work and effort.
1 blaze
18:36 21 Jan 21
Jackie and the team at David Sklar and Associates took my very stressful situation and made me feel at ease. I was treated with respect and understanding from the start of my process right through to the end. Prompt email and phone responses made it feel like I was at the top of their priority list.Jackie and the team at David Sklar are the best in the business. I would highly recommend using their services.
Tree Broker
14:33 20 Jan 21