Bankruptcy in Toronto – Nicole Gets A Fresh Start
At 33 Nicole (not her real name) was, as she described it, “ready to start over, again”.
When she was 22, Nicole had graduated from University of Toronto with a bachelor’s degree, and an abundance of student loans. Although she had been warned ‘by everyone’ that the degree she was getting would not help her find a good job, it wasn’t until she had graduated that the reality of her situation set in. She was heavily in debt and the only job she was able to find was in retail.
Fast forward 11 years and 8 jobs: Nicole was still in retail and still heavily in debt. Only now, she had a 9 year old son to support on her own and she could no longer cope with her overwhelming debt load.
Although a friend had recommended David Sklar & Associates, Nicole was worried that it might be another false start. But, after her first meeting with Richard Sklar, Estate Administrator, she began to realize that she had found a real way to start over without the crushing burden of debt.
During the initial meeting, Richard and Nicole reviewed her existing financial situation:
|Monthly Net Income: $2,100|
|Student loans (more than 7 years old)||$17,500|
|Credit Card debt (3 cards)||$10,500|
|Total Debt Owing||$35,000|
No Assets over the maximum allowed in the Ontario Exemption Act
After reviewing all of her options with Richard and the Trustee, Nicole decided to file for bankruptcy – as she honestly doubted that her income was secure enough to file for a consumer proposal.
Because Nicole did not have Surplus Income as defined by the Superintendent of Bankruptcy, her bankruptcy period was for 9 months.
During those 9 months, Nicole was required to submit a monthly report on her expenditures, and income. She attended credit counselling sessions that gave her the tools to build a more secure financial future. As well, she paid $200/month to the Trustee to cover the administrative cost of the bankruptcy, and honored all the terms of her bankruptcy.
At the end of her bankruptcy, she was released from her debts and got the ‘fresh start’ she needed to move ahead with her life. Nicole is determined to make the most of this opportunity, and is enjoying the freedom of being debt free.
To protect our clients’ privacy, aspects of this case study have been altered