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.

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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The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
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15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
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01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
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21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
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