Common Misconceptions About Filing for Bankruptcy

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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.

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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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.
Ariel Domingo
02:33 29 Dec 22
I was a reck talking yo Jason Sklar was easy comfortable he explained everything and put my mind at ease I would recommend the team od sklar to everyone. I have already talked to my ci workers about them
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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