Make An Informed Decision About Filing For Bankruptcy

Does filing for bankruptcy make sense for you?

Many people are reluctant to consider bankruptcy because of the stigma around it, but it may be the most sensible option you have to get out of debt. If you are stressed out by debt collectors, high-interest rates, late fees on your credit cards, or the impossibility of paying back your debt, bankruptcy could be your best option. You just need more information about the process.

The Time to Claim Personal Bankruptcy

There is no single answer if you want to know when to claim personal bankruptcy, but there are some circumstances in which it makes sense. A bankruptcy trustee, now known as a Licensed Insolvency Trustee, will take a closer look at your debts, income, assets, and your complete financial situation. Some of the situations in which bankruptcy may make sense include these:

1) You Don’t Own Many Assets

Consumer proposals make more sense when you own a number of non-exempt assets. Otherwise, bankruptcy can make more sense. Rather than consistently paying back your debt in fixed payments for the next five years, you can be forgiven for a large amount of your debts after selling those assets you do have and contributing to any surplus income payments you may have to pay.

2) Personal Bankruptcy Is Your Last Resort

At David Sklar & Associates, we encourage people facing high levels of debt to come in sooner than later. The earlier you talk to a bankruptcy trustee, the more options you will have available to you. If you wait too long, your creditors may not accept a consumer proposal. To find out more about the process for filing a consumer proposal, check our consumer proposal FAQs or talk to a bankruptcy trustee directly.

The Consequences of Filing for Bankruptcy

There are consequences to filing for bankruptcy, but compared to giving up more and more of your income to debt repayments, they’re often worth the debt relief. Aside from losing assets such as property or investments, you will have trouble borrowing again after your bankruptcy due to your credit report.

A bankruptcy is reported on your credit report for six years after your date of discharge on your first bankruptcy and fourteen years after your second bankruptcy. However, this is less time than a consumer proposal would remain on your credit report since a consumer proposal can last up to five years and remain on your report for up to three years after you complete it.

You can spend this time rebuilding your credit using tools like secured credit cards and paying your bills, car loan payments, and mortgage payments on time. When your bankruptcy is removed from your credit report, you will be in better standing. Part of the bankruptcy process also involves credit counselling with David Sklar & Associates, and we will tailor our credit counselling to your financial situation.

The Benefits of Filing for Bankruptcy

Filing for bankruptcy isn’t all negative. There’s a reason people file for bankruptcy and it’s because they may have no other way of getting out of debt. Becoming insolvent means your assets and income are not enough to pay back your debt. Interest rates and late charges will only accumulate while you struggle to make minimum payments.

Debt collection calls and even wage garnishments can hamper your ability to keep up with basic expenses while your creditors claim your paycheque. You don’t have to stay stuck in debt. Talk to a bankruptcy trustee about getting debt relief through filing for bankruptcy.

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. 

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest

Ready to live debt free?

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!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
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!!
Debbie Livingston
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. ❤️❤️❤️
Cassandra Keenan
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!
prettylush 13
02:42 10 May 22
js_loader