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).

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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.

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Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
I was a reck talking yo Jason Sklar was easy comfortable he explained everything and put my mind at ease I would recommend the team od sklar to everyone. I have already talked to my ci workers about them
kevin mcweeney
01:13 22 Dec 22
The team at David Sklar & Associates is fantastic.I worked with Jerry whom not only made - what seemed like intimidating process to initiate at first - comfortable.He made everything transparent and took the time to explain the process every step of the way.He was kind, attentive, and professional. Everything was made straightforward and stress free and we found a solution together that worked.Thanks to Jerry and the team.
Jordie Angiolillo
18:22 21 Dec 22
From day one till the end which is today😁 DavidSklar gave me a 5star service and treatment. And I will 100% recommend him and his Associates. This is the best Christmas present ever! Thank you David! More business to come! Merry Christmas and a Happy New Year!!!
barbee diaz
16:37 16 Dec 22
I FOUND DAVID SKLAR & ASSOCIATES BY GOOGLING "BANKRUPTCY" (EARLY NOV. 2021). ON NOV.4, 2021 I HAD A MEETING WITH CORI NARON AT HER OFFICE AT ST CLAIR ANDBATHURST. HER POSITIVE APPROACH TURNED ASTRESSFUL SITUATION INTO A STEP BY STEP UNDERSTANDABLE PROCESSON SEPT. 23, 2022 I OBTAINED MY AUTOMATICDISCHARGE FROM BANKRUPTCY AND MY CERTIFICATE OFDISCHARGE.THANK YOU CORIBRUCE BURGESS
bruce burg
21:35 02 Dec 22
Jerry was wonderful and provided superb service. He is very knowledgeable, trustworthy, and made an intimidating and shame filled time in my life stress free. I hesitated for a long time to take the next step, but Jerry answered all questions, was patient and made the process effortless. I am eternally grateful, and highly recommend Jerry’s services.
M J
18:41 01 Dec 22
Jerry was professional and was easy to deal with
Debbie Asquith
00:09 29 Nov 22
I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
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