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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Very professional and fast service! Also, personable!.. they don't treat you like a number, but like a person.From the time I first contacted them, until I was set up there has been not more than 7 days.I dealt with Jackie, she was great!
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19:59 18 Jun 21
I would just like to say thank you to David Sklar & associates for helping me out in this difficult time I was in way over my head, I was introduced to Jackie Stanley, at that moment things got better the calls stop. Jackie was so professional helpful, trusting answered all my calls all my Text, and emails professionally and respectful!! I can’t believe it, and now I’m gonna build my credit rating back up and have my life back Thank You, Jackie Stanley at David Sklar& associates, for doing an outstanding Job!!!!
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21:50 16 Jun 21
I am not very good at putting words together especially when your speechless for all the help from such a friendly happy non judgemental team. From being financially stressed and depression hitting all at once I connected with Jackie Stanley💯❤❤ from David Sklar team in a whole other level,she is an absolutely joy to deal with and very informative let me know there is light at the end of the tunnel.. despite my struggle the amazing lady Jackie Stanley was able to put a smile on my face and make me laugh super happy and grateful 🙏I was able to connect with her from David Sklar &Associates team I 💯 percent recommend her (Jackie Stanley) and will continue to recommend her. To any one looking to get out of debt or have any questions belive me when I say you will not be disappointed with Jackie she's such a great person and I'm lucky to have been able to recieve the help and guidance from such a wonderful person and you will be also...look no further no where but up from here ...Thank you So so much Jackie much appreciated
Richelle Barriault
17:57 16 Jun 21
Reached out to Jackie, who was very cordial and professional. Highly recommended.
The Lit Lion
16:54 16 Jun 21
I must admit that I am so glad I called! I spoke to Rhoda Lewis who right away made me feel at ease. She's so caring and supportive I highly recommend her. Thanks to her my life is now on track! Thank you David Skylar & Associates Inc!
Grace Muller
17:55 25 May 21
Very professional and courteous. Jackie was very helpful and understanding. She was happy to answer any questions I had and we were able to process everything quickly with no hassle.
Nicholas Burnett
17:07 19 May 21
I would say my experience with David Sklar was spectacular, they made it really easy for my through the whole process and now 9 months later my bankruptcy is discharged.i would recommend David Sklar to anyone.
HN
23:00 06 May 21
I had a nagging defaulted student loan that was holding me back. There were a few smaller issues that were compounding. The lockdowns really forced me to look into building back my credit and starting fresh.Ashley at David Sklar & Associates at the Keele and Finch location was a blessing. She was thorough in her explanations and answered any concerns I had. She gave me the options and let me decide what was best. After conferring with her, I decided bankruptcy was the best option. She made the process of filing for bankruptcy easy.There's nothing to be afraid of. Stigma attached to bankruptcy but you can reset if you work hard to make it happen.I highly recommend speaking with Ashley if you have any concerns about debt solutions.
A M
14:39 04 May 21
I highly recommend David Sklar & Associates Inc. They helped me with my finances along with the help of Ashley Carter whom assisted me thoroughly throughout the process of my Consumer Proposal. She is very friendly, professional and updated me occasionally through emails. With her tremendous help, I am very thankful to have accompanied someone like her!
Pilar
21:05 28 Apr 21