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. 

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Ready to live debt free?

I cannot emphasize enough how thankful I am for Jackie Stanley's help with filing for bankruptcy.All of us dread being put in this position and we have a million questions about the process but trust me Jackie makes it so easy for you that you don't have to do anything yourself!She is very kind and friendly and puts you at ease right away. She emphasizes with you and let's you know it's not your fault.Most importantly when you leave that first meeting you will not believe the load that is taken off your shoulders. You can actually feel it!You are a godsend Jackie and I can't thank you enough!!I hope you are highly valued there as much as you are by me!
Sue Murray
18:45 05 Dec 21
Putting together and executing a Consumer Proposal can be daunting, that is unless you work with Cori Naron at David Sklar & Associates Inc. Cori's advice and support has been instrumental over the past five years. Thank you Cori!!
Barry Kuntz
20:37 01 Dec 21
I’m very happy with the services I received for Jackie Stanley who helped me get my finances in order. It was a quick and easy process & all of my questions were answered.
Amanda Frappier
01:18 19 Nov 21
I have had the privilege of being supported by Jackie at David Sklar Associate. She was very helpful, very professional and very friendly. She gave me the help I need. Thank you Jackie for your help.
Alex Taylor
22:03 17 Nov 21
Got my probe solved, great service
arny raposo
17:02 11 Nov 21
Jackie at Daivid Sklar and Associates is such a pleasure to work with. She explained everything in great detail and is always there when I have a question or concern. She really cares about her clients.
Steve Medica
09:33 10 Nov 21
I filed a proposal with another group, which came in as a referral from one of my brokers. My experience went from ok to bad to worse, due to lack of communication and education on the process I was to embark on. I worked with Cori Naron in the past, and I came to her now for help on literally doing the work that the other group should have done. Cori stepped in, educated me, advised on rights, responsibilities, how the process works and what potential outcomes may happen. I do not have enough words of recognition and gratitude for what she did - she alleviated stress, anxiety, dead-end thoughts and she made me live again. Congrats to DSklar for hiring her and retaining such talent.
Giani Kokolakis
18:45 25 Oct 21
Very professional service. Before contacting David Sklar & Associates i contacted bunch of other firms they seemed fishy. After I spoke with Jason Sklar at Hamilton Office I discovered professionalism with hope. I was explained every step of my situation with solution professionally. Thank you David Sklar & Associates.
Wajay Awan
07:29 12 Oct 21
I met David a few months ago and i am glad I did. He has helped me all the way through my bankruptcy with good advice and explained every step of the process. David is a very down to earth and very professional. Anytime I've had a question I was able to reach out to David by phone or email and he always got back to me. If your struggling with your bills and need a way to get help, I strongly recommend David Sklar &Associates to help you. My experience with them on 1-5scale would be a 5;; My life is so much better now, thanks to David Sklar.
Bruce Locke
16:13 08 Oct 21
I have had the privilege of being supported by Jackie S, at David Sklar n Associate.She was helpful, professional and friendly. I was able to get the help I needed at a difficult time in my life. I would recommend anyone who needs support with working out their debts to ask for Jackie, she will be waiting to assist however she can to help you through your debts. She works with a team who is always ready and responsive.Thank you Jackie and your team:)
Denise Simpson
15:17 09 Sep 21
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