David & Sylvia: Overcoming Bankruptcy

David & Sylvia – Building Hope in the Greater Toronto Area

David and Sylvia (not their real names) immigrated to Toronto from Hong Kong over 25 years ago. They found their way to David Sklar & Associates Inc. – Bankruptcy Trustees, through a combination of health issues, economic down-turn, and business failure.

Although both David and Sylvia were well educated and experienced professionals (David has a degree in Mechanical Engineering and Sylvia has an MBA from Oxford) neither were able to find employment in their fields at their levels in the Greater Toronto Area. Eventually David found permanent work as an Operations Technologist and Sylvia found work as a Sales Associate. After years of saving, they were able to buy a home and then to start up a small Wedding and Special Events consulting business run full-time by Sylvia. They used part of the equity in their home to finance the business. Their combined incomes reached $95,000 per year.

In the year leading up to their initial consultation at DSAI they experienced a number of setbacks: David suffered a minor stroke that left him unable to work for several months; Sylvia’s business took a major drop in income as people tightened their entertaining expenditures during an economic down-turn; and unable to meet her business debts Sylvia was forced to close her business. After the closure Sylvia could not find permanent work. This, combined with David’s reduced income during his convalescence, resulted in them using credit for the basics of life: food and shelter. After several months, David was able to return to work fulltime however, their now total income of $60,000 per year was still below their needs, and they found themselves spiralling further into debt.

When they looked into selling their home, they discovered that the value of their house had dropped to the point where they had less than $1,500 equity left in it. At this point they had a $350,000 mortgage, a $12,000 car lease, 5 credit cards with a total of $85,000 owing, overdrafts of $15,000, business debts of $21,000, and an outstanding line of credit at $48,000. With over $169,000 of unsecured debt, and collection agents calling – David and Sylvia were desperate.

At their initial consultation with David Sklar & Associates Inc., David and Sylvia explored their current financial plight with their Estate Administrator, Rhoda Lewis. Rhoda reviewed their options with them, after which David and Sylvia decided to file for Bankruptcy. Rhoda then worked with them to complete the required Bankruptcy forms. An essential aspect of Bankruptcy is the education of bankrupts in debt management and budgeting. Using the required Bankruptcy budget forms, David and Sylvia were able to set up an appropriate budget that they would have to follow for the nine months of their Bankruptcy.

Acting as their Bankruptcy Trustees, DSAI filed their Bankruptcy with the Office of the Superintendent of Bankruptcy – at which point all of David and Sylvia’s unsecured creditors were required to stop collection efforts and only deal directly with DSAI. David and Sylvia qualified for a nine month Bankruptcy period because they did not have any surplus income in accordance with the guidelines established by the Superintendent of Bankruptcy.

Due to the almost non-existent equity in their home, they were able to file for Bankruptcy without having to give up their home. David and Sylvia were also able to keep their leased car. Payments on the home mortgage and the car lease had to continue being made as these are considered to be “secured” debts.

During their nine month Bankruptcy, David and Sylvia were required to follow and submit their completed budget every month for review. Because there were no assets to be disbursed to creditors, they were only required to pay the minimal flat fee for Bankruptcy ($200 per month x 9 months for a total of $1,800 per Bankruptcy).

From the moment that David and Sylvia began working with DSAI Trustees, the stress and tension in their lives began to diminish. Once they were officially in Bankruptcy and their creditors no longer were contacting them, they began to see what a ‘fresh start’ was all about, and to look forward to their life after Bankruptcy.

With the successful completion of their Bankruptcy, David and Sylvia were legally released from any obligation to pay the unsecured debts covered by the Bankruptcy. Their lives have turned back towards the hope of finding and living the Canadian dream. They have gained a true appreciation of the laws of Canada that protect its citizens – and offer the hope of a ‘fresh start’.

To protect our clients’ privacy, aspects of this case study have been altered.

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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