Erica: Personal Bankruptcy in Mississauga

Table of Contents

‘Erica’ a Case History: Personal Bankruptcy in Mississauga

Since leaving university in 1993, ‘Erica’ (not her real name) had worked as a civil engineer. She had progressed through two Mississauga companies, and finally decided to set up her own consulting company in 2000.

At first, her company (a sole proprietorship) had done very well. However, by 2002 her business had dropped off to the point it was no longer profitable.

Too embarrassed to ask for help, and convinced she could turn it around, Erica poured her savings into the company. When her savings ran out, she began to use credit. After several months, her credit cards were maxed out. She then got a consolidation loan from her bank and paid off the cards, but she continued to use the cards to fund the business.

By 2004, Erika finally accepted the fact that her business was not going to succeed. Realizing that she was too far in debt to ever be able to pay it off – she decided to contact David Sklar & Associates (DSAI).

*** ***

During her initial meeting at DSAI, Erica reviewed her financial situation with Rhoda Lewis, Certified Insolvency Counsellor and Estate Administrator. During the meeting, it was disclosed that Erica’s financial situation was as follows:

Debts
     2 Credit Cards$28,500
     Unsecured Bank Consolidation Loan$34,000
     Canada Revenue Agency (Personal Taxes and GST)$22,900
     2 Other Unsecured Loans$750
     Total Unsecured Debts:$86,150
Assets
     RRSP$3,500
Income: None

After careful consideration, Erica decided to file for personal bankruptcy.

After closing her company, Erica was unable to find a job. Her family was supporting her during this time and took care of her living expenses. Although Erica was able to find employment during her bankruptcy, it was only part-time and did not result in her earning surplus income.

Because she had no surplus income, and this was her first bankruptcy, Erica’s bankruptcy ran for 9 months, during which time she paid the costs of administration only.

In 2008, the Bankruptcy and Insolvency Act was changed to exempt RRSP’s from Bankruptcy in most cases. While contributions made in the 12 months prior to the bankruptcy can be clawed back for the creditors – the rest of the RRSP may be exempt from Bankruptcy. However, Erica’s bankruptcy was filled in 2004 and her RRSP was designated for disbursal to her creditors. The company holding the RRSP was experiencing legal issues at the time of Erica’s bankruptcy and her RRSP was not available for disbursal.

At the end of 9 months, Erica was discharged from her debts. Several months after completing her bankruptcy, Erica found a full-time job and began to rebuild her life.

In 2009, the legal issues around Erica’s RRSP were resolved and the funds from her RRSP were distributed to her creditors by DSAI.

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

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 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!

I had a great experience with Jerry Janiec and his team at David Sklar and associates. Within a week I was already accepted and filed for bankruptcy and in a few months I will be debt free! It feels like a lot of stress is off my shoulders. Jerry and his team are very friendly, helped me along the way and was there to explain every detail of the process with me. He gave my his card and is just an email/call away if I need any help with paperwork and completing my duties. He is a very patient and kind professional and I am so glad I chose him and this company to help me fix my financial problems. If you need help with a consumer proposal or bankruptcy (like I did) I highly recommend Jerry Janiec and David Sklar and associates!
Lisa Gomez
1709492022
Very professional and caring. Cori, explain everything and listened to my situation. If I didn't understand, she will explain it again. I'm glad that I went to David Sklar and Associates for my financial difficulties.
Richard Hong
1709358914
Great experience with this company . Especially Jennifer N. communication was amazing and really helped out my situation. Highly recommended her and David S .
Jay Mil
1709336666
Everything went well. I will update in 5 years
Trisha C
1709311761
My experience with Cori was phenomenal. Cori took the time to explain the process thoroughly, listened to my concerns and reassured me. Cori has exceptional people skills and cares about the people she is helping. The experience throughout was professional, kind, warming and inviting.
Angie
1709250956
A huge thank you to Jackie S and to the David Sklar and Associates team. Steps made easy , Jackie S has been there during the entire process , whether it was through emails or phone calls . I felt acknowledged and respected . I’d recommend David Sklar and Associate at a heart beat !! Cheers , Dennis
Dennis Armstrong
1709249142
Very happy to talk with grace and she explained my options.Grace is very knowledgeable,friendly,and helpful. She made feel very comfortable,with her help I am on the road to be debt free. She relieved so much stress. I highly recommend them.
Kelley Roberts
1709243575
David Sklar & associates is the place to be if you’re looking for help on your debt consolidation. Kudos on their staff Miss Grace Cuffaro who were very patient guiding me on complying all required documents.
Nhie GU
1709082686
Reduced my stress and gave me a second life. Sincere heartfelt thanks to the team.
Selvaraj Dhanagopal
1709061781
I am very pleased with the experience with your company. Great customer service and very professional. They made me feel like dealing with caring and friendly people. Jackie is a sweet lady. All of them very helpful.
Carolina Marroquin
1708815208
js_loader
DS david skalr icon

Book your free consultation.

Call 1-844-962-9200 or fill out the form below. We’ll do the rest.

Contact Us